ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Budget Theory to grow savings for those with minimal debts

Updated on September 28, 2012

Budget for savings

New to budgets. New to big bills?

This budget is designed to prevent living paycheck to paycheck. To be prepared for the bills as they arrive while saving and having left over money to live a little.

I find I am very attached to the numbers increasing in my account. When they rapidly drop, so do my spirits. Unless I am prepared for it the loss or am receiving something of benefit, in the exchange.

This budget works for people who have no or low debts, and are able to keep on top of the money as it goes in and out.

We started out with labelled envelops, that matched a budgeted amount. Each pay we withdrew the entire income amount from our bank. Please note: This is insecure way of holding money however an excellent way to learn this budget in a hands on capacity.

After a while we started a spreadsheet on the computer as the money in the envelopes was growing so fast. We could be earning interest on that money. This is also a far more secure and smarter way of keeping your money. If you follow the banks rules, not sharing pins, and not keeping them written down in insecure places - like your wallet for instance.

We started running a cashless system, using our debit card. In accordance with our monthly limit on EFTPOS transactions. It works really well if you keep track of them and don't just swipe willy nilly. If you do use your ATM card you will also need to know your bank fees, for how you use your card or bank account in general.

Survival Budgeting

This particular budget theory - is based on a survival mode, its not a place you want to stay but a great place to start. We set ourselves up that our expenses would not exceed the dole - as a back up plan if things went wrong. The “dole” in Australia is about $400.00 per fortnight per person over a certain age. Thankfully nothing went wrong and we were able to explore more budget theories.

When we got married we had very few debts and a small income. We were ineligible for the dole. However I based my budget theory at the stage on the fact that if I lost my job we would not be in debt or have to move in with relatives. We had little overheads, we lived within the budget in a worst case scenario. We were still able to spend a little, and do spontaneous things. The aim was to never stay at this budget; We had big dreams of owning our own home.

I remember this budget because I wrote it so many times and checked it every pay, and every time we spent money. (This is in Australian dollars and is a few years old)

Rent $260 per fortnight
Food $75.00 per fortnight (this consisted of a lot of mince, lentils, chick peas, rice and pasta.) We also grew veggies, however were home so little they would seed on there own.
Electricity $25.00 per fortnight for quarterly bills (I was very frugal and turned everything off at the wall. So our bill was around $150.00 each quarter)
Gas $15.00 per fortnight (we were on gas bottles which are more expensive than mains gas.)
Petrol $150.00
Bus Tickets $60.00
Car Registration/insurance $35.00 (we only had 3rd party insurance on our first car.)
Medical $20.00
Clothes $20.00
Presents $20.00
Holidays $75.00

As we went through with this budget people would ask us if we'd like to do certain things, and I would reply "yes we have money for that." Or "No we don't have money for that." Which was based on how much was left in that particular budget area.

This budget includes the bills that come up annually, they are not surprise bills. Your budget will look different to this budget and things to think about are; when is your drivers license due for renewal, what have you included that under? Any other memberships that you pay? Club fees? School fees? Save for goals like holidays if you can. Budget in the bills you owe.

Sometimes when things were tight or a lot of bills came in a row, I could take money from somewhere else in the budget. To ensure that we were able to afford all our bills, I would put the offending bill that hadn't quite accrued all its money in deficit money until the monies accumulated again, through income.

When finding yourself with a surprise bill (and this budget theory is working)

If a bill that is not in the budget arises, like a speeding fine or extra medical expenses.
The you need to take the money from somewhere. The choices are not always as they seem. You would be tempted to take from rent as it is the biggest. This is the worst choice – this bill is a constant it never gets smaller, and it will grow by the same amount next fortnight/week/month, plus you will owe the money twice. A very bad trap awaits to not pay the rent.

It’s not ideal to take money from food either. However I know people who ate 2 Minute Noodles, for a month to afford to pay for a Pool table.

My first place to take the money from would be clothes, presents or holidays, this is worth in this budget $115.00 and possibly not even accrue them if things were incredibly tight.

If you take it from the others, you need to consider when the electricity account is next due, when the gas bill is coming next, when the registration/insurance is next due. Can you save money on petrol? On bus tickets? A lot more organisation goes in to it. If you stick this out at the start and see the accumulative effects. You will find it a lot easier to have the flexibility to spend money within reason as you please.

If you require more information please check out these:

Biggest budgeting mistake

Everyone has a few surprise bills or the big bills all come at once before you have had a chance to save up for them. If you notice in my original budget, there was no car maintenance fund, yet we were driving a ’86 Ford Escort, and it had issues! The money in the account quickly reduces to zero. It’s a horrible feeling because you were working towards your goals but now everything has stopped in its tracks or so it seems.
Don’t let it ruin everything. It hasn’t. Now that the big bills or surprise bills have come and gone the budget will recover.
Don’t make the budget ridiculously tight, or you will splurge, then feel guilty, and repeat the cycle. Make it manageable, give yourself space to spend money, save and pay the bills.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)