top of page
  • Writer's pictureSheneri

5 Components of a Female Single Professional's Budget Plan




A budget plan is a list of where your income goes. It will help you track your expenses and be mindful in case of overspending. It shows the detailed flow of your money the moment your earnings come.


Personally, budgeting is the hardest part of handling finances. It needs discipline. Most of the time, it causes me a headache. Can you relate? How disciplined are you in your budgeting? Have you consistently done budget or not at all as long as you buy what you need and want.


So, in this blog, you'll be learning the 5 components of my simple but authentic budget plan which helps me track my payables and expenses, then minimize or avoid unnecessary spending.


Be ready to learn and be inspired to do budgeting.



Component #1: Source of Income



My salary is the main source of income. Sometimes, can do a side hustle. However, most of the time salary is the only means to pay for bills and other expenses. Good thing, for now, my salary suffice all of my monthly bills and expenses. It takes a tight budget.


Here are some of my working gigs (not consistently, only for a short time) that you can start doing and make an extra income too.

  1. Facebook Content Creator - I create, design, and schedule content for engagement.

  2. Article Writing - I make articles about personal finance topics for a financial blogger like Fitz Villafuerte.

  3. Website Creation with SEO Basics - I build my own website through the Wix platform as my online writing space.

For more working gigs you can consider, check here: https://bit.ly/TrendingSideHustlefor2022


Please note that the more side gigs you have, the more extra income you'll make as another source of income. But, be reminded to manage your time and not be able to burn out which leads to inefficiency.


Component #2: Mandatory Expenses



Are you working for a private company?


For corporate employees like me, our mandatory expenses are government contributions such as 1. SSS (Social Security System), 2. PHIC (Philippine Health Insurance Corporation), and 3. HDMF (Home Development Mutual Fund) which the employer deducts the employee's share of contribution from salary as mandated.


These mandatory expenses are based on respective salaries except for HDMF which has a general minimum of Php 200.00 shared equally by employee and employer.



Component #3: Monthly Bills



Another component of my simple budget plan is the consistent obligations or the so-called monthly bills. Such bills reveal are in the perspective of living independently.


Rent, electricity, water, and internet are the single professional's consistent bills to pay. Internet is included because nowadays most professionals work at home.


The fact says with or without income, these things exist which you are obliged to pay unless you're living with working or pensioned parents.



Component #4: Savings and Investment



A simple formula in handling finances shows like this: Income - Savings = Expenses. If you are tithing, it would be like this: Income - Tithes - Savings = Expenses. Sounds familiar? Or a little bit opposite?


To be honest, for now, my savings comprises an emergency fund and retirement fund. Planning to separate it later on when my side hustle keeps going. This is called budgeting with a budget. Bottom line, setting aside a portion of money for savings must be a single professional's top mind.


In my late 20s, getting insured was the wise decision I made to be financially responsible. In line with this, I'm personally advocating financial literacy to other female single professionals especially those who are still in their early 20s and working. And this is part of a purpose-driven investment.


Furthermore, I started to invest in low-budget capital. Did you know that you can invest for only Php 500.00 pesos? Modified Pag-ibig II is my low-budget investment which you can begin with a minimum of Php 500.00 if you are a beginner in investing and you can grow later on.



Component #5: Allowances and Wants



Allowances pertain to petty expenses like transportation and meals whenever she needs to go out. Furthermore, these expenses only consume a small portion of the budget and whenever needed especially the work from home setup.


Your wants seem unnecessary to you, isn't it? Well, you're partially right but I include this in my budget plan. Why? Simply because I believe after hard work I deserve a self-reward. And I would say it is fine. What's not okay when spending for your wants is neglecting other needs just to push your wants. Be cautious enough of justifying your wants in the budget plan and I'm working in progress on it.



Extra Components


Since I wanted you to have results from this simple budget plan where I shared the 5 components plus relevant takeaways along with each component, I will be adding 2 extra components.


One is the remarks for incomes less listed expenses which shows the variance of the budget amounts you set versus the actual amounts per outgoing payment or spend you made. It will help you decide or plan a strategy for the next month's budget plan. It's either you will eliminate certain expenses or add another source of income.


The other one is an action plan where you can note what needs to be done so that you'll have a better budget plan for the next month. This part is based on the remarks you have for a certain month for the budget versus actual amounts. Lastly, an action plan can explain if you have overspent, having an extra amount at the end of the month which can be used for investment and can help to identify results.




To summarize, my budget plan is simple. It consists of 5 components which are the source of income, mandatory expenses, monthly bills, savings and investment, and allowances and wants. Additional are remarks and an action plan.



To mention you, I'm planning to create a template for this budget plan where you can freely input your applicable expenses and track your budget versus actual finances. So, to make it happen this blog will be part of a survey. Your participation will help me inspire to bring the template into existence through your simple act of sharing this blog or your thoughts in the comment section.



Until next finance blog!

37 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page