A budget journal is kind of similar to a diary; except that it deals specifically with money, and how you spend it. We’re going to offer you an example of how to make a simple one, but we recommend you lay it out in a way that makes the most sense to you, so that you use it, and continue to use it!

Getting Started

1. Buy a cheap notebook from a stationary store or supermarket. Even some A4 sheets folded in half and stapled in the middle will do. Basically, all you need is a book.

2. On the first fresh page, draw a large rectangle. Then, using a ruler, divide it into 4 equal parts. The large rectangle represents the whole month, e.g. APRIL. The smaller rectangles are the four individual weeks. You can either label these as Week 1, Week 2, etc., or you might like to label each one with the actual date that the week starts on. You should end up with something that looks more or less like this:

Keep Those Slips!

Now, here comes the challenge. Every time you buy something, you need to KEEP THE SLIP. Starting out, you might forget to do this; in this case keep a special envelope with you at all times to put the slips in as soon as you get them.

Enter the Amounts into the Relevant Week

Next: At the end of every week, you have 10 minutes of homework to do.
Get your slips out, and write out the individual items and costs one below the other, together with how much they each cost.
For instance, Week 1 may look like this:

Analyse the Data

Now, see how at the end of week one we have a total? Here’s where you’ll need to use your calculator app to add up all the costs. As you can see, this week you spent R211.00.

Consider this total carefully. Maybe it’s within your means, in which case, fine. Probably though, you’ll get a shock at how much you've spent, and it’s this shock that is going to help you be more “wise” with your cash!

Adjust Your Spending

Now that you’ve written down in detail everything you spent money on, you can see what was necessary and what was not, and where your spending can be “tweaked.”

The two main costs this week were airtime and the party.

Could you have managed the week with only topping up once?

Could you have spent less on that party? The answer is probably yes.

We’re not saying you have to be a total nerd; just that you need to be strategic, smart and practical about how you spend your money.

Remember, when you ARE earning a salary, having a meal out with friends and buying that pair of sunglasses you really want WILL be a possibility. Until we have that job though, you need to keep focussed on keeping spending to a minimum.

Lesson 2: Making a Budget Journal

A budget journal is kind of similar to a diary...