Creating a Monthly Budget Plan: Balancing Happiness and Financial Goals
- earlyretirementjou
- Jul 20, 2023
- 2 min read
In the picture, that's me. Each month, I allocate money to different envelopes. I don't strictly follow percentages; what matters is consistently setting aside funds, making it a joyful hobby that turns into a habit.
Eternity Fund - Every month, I give back to God. I have three sources of income: business income per branch, freelance income, and rental/investment income. From each source, I set aside a portion for this fund.
Educational Fund - I allocate a small amount here, saving up for books or attending financial seminars.
Enjoyment Fund - Of course, it's essential to enjoy life and not just focus on saving. This fund allows me to dine out, treat myself to samgyupsal, and other happy activities. Sometimes, there's even a surplus, adding to the next month's fund.
Empower Fund - This fund is for personal expenses or luxury items, like a branded bag or a new phone. Life is short, and it's important not to deprive ourselves entirely. The amount varies, and it's not a priority.
Everyday Fund - This covers daily regular expenses, such as food and water. I set a monthly budget of 20,000. Any leftover amount goes to the enjoyment fund. My passive income covers my rent-to-own expenses.
Emergency Fund - In case of sudden significant expenses, I rely on this fund. It covers more than six months' worth of expenses. I'm still building it, focusing on the health side. However, I have life and health insurance and an HMO.
Personal emergency fund - My business also has its emergency fund. I'm still building it for rentals or have other rentals to fall back on if one performs poorly.
Emancipation Fund - This is my investment fund. I no longer allocate money here directly, as I invest a substantial portion (around 80-90% of my total income) in various investments.
For my business, it's a different setup. It generates its income for expansions, and I only receive a salary from each branch.
In this journey toward financial freedom and fulfillment, I invite you to join me as we embrace the art of balancing pleasure and savings. Let's make consistent budgeting a happy habit and witness how it empowers us to live life to the fullest while securing a prosperous future.
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