Your Finance Travel Buddy presents One Simple Step

Hello fellow Financial Freedom Seeker

Mindset Moment

Welcome to our special edition daily budgeting tips 

Your One Simple Step today is…

Think About Variables That Will Impact Your Budget

Why is this important?

the definition of variables is

“something that can be changed”

Both income and expenses can change year on year. 

For example, income increases if you get a payrise and expenses can increase with inflation. Because the numbers going into your budget can change, especially when looking at them annually, it is important to consider these variables when creating your budget so it can be as accurate as possible. 

How do I implement this?

1. Think about any increases to your income like a pay rise

Are you expecting to increase your income in the year?

Pay rise, bonus, commission, side hustles are all examples of things that could increase your income. It is important to consider how plausible these events are and how much your income could rise by. 

2. Think about whether costs will increase by inflation (or more!)  

Inflation is the rate at which prices rise. It is likely that your non fixed costs will rise year on year because of this. 

It is therefore sensible to include inflationary cost rises in your budget. For example, if you’re budgeting social activities, it’s worth making them more expensive than they are now, as these have often been hit by above inflationary rises. 

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Have a fabulous week ahead!

Until tomorrow

Pernia | Your Finance Travel Buddy