ACCOUNTANT EXPLAINS: How I manage my money on payday: Income, Expenses & Savings
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- เผยแพร่เมื่อ 29 พ.ค. 2024
- From this video: Free Intentional Spending Tracker - Click File and Make a copy to use for yourself - nischa.me/intentionalspending...
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00:00 - Overview
01:23 - Define the 3F’s
04:49 - Month at a glance (the breakdown)
10:03 - Reflections
DISCLAIMERS & DISCLOSURES
This content is for educational and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Thank you for your support!
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From this video: Click File and Make a copy to use the Intentional Spending Tracker (free): nischa.me/intentionalspendingtracker
Hi Nischa, I can't seem to download it
@@milenavu I got the email after 10 mins.
It does not seem to be working..
@@Jonauz same for me
I just figured it out, at least for my case. I assume I had signed up for some content previously using my email, and this time, it fails to send, because email is already registered. You have to use new email (silly), and it might work. (I had to do so with email alias)
Nischa, I've been a fan of your videos for over a year, but this one is a mark above the others. The more budgeting advice, the merrier are we viewers. Keep up the hard work, and thank you!
Really glad it's helpful!
@@nischa One video request if I may: paying down out of control credit cards correctly and efficiently, as well as general advice for credit cards in general
@@hashassassin830 I'll second this! MY CC is 4k the last year as I' keeping a family of three afloat on single wage so struggling big time to get it down.
Pro Tip: Never own a boat. Always have a friend who owns a boat.
GREAT TIP! 😂 I'll keep this one in mind 🤌🏾
😂🎉
😂😂😂
I actually like manually paying my bills and not setting up direct deposit. It works for me because it reminds me how much I'm spending and reminds me to check my budget more often
same here
A word of caution from a real world experience, if something happens and you're ill/in hospital, these bills may not be paid (even though the money is available) and add stress to an already stressful situation for those around you. Hopefully it never happens, but for the peace of mind I would urge consideration to automate the critical ones!!
@@richgale165 This is a great, and unfortunate point I have never considered before. Thank you :)
I wonder why are such useful life tips not taught at an early age. These are simple concepts yet critical in defining success or failure!
You rock Nischa! Keep educating us!
Ya I had the same thought too... We r thought so many things we hardly use in life.. money is something everyone needs to know about and not even a basic lesson on it😮
Nothing of life importance is not taught in School and it's for reason.
They ( whoever they Are, AI, aliens ) keeps humanity in low evolution stage with focusing on negative emotions. Humanity is enslaved.
They were so over-advantage over us that they gave us all tech. in the last 50 years , just so that we can wake up and start running for our dear life.
But hey, the mitochondria is the powerhouse of the cell!
Your video pop up whilst I was studying and my goodness I am now binging on them. Literally covers every aspect very detailed but yet very clear, precise, eloquent, understandable concept, infographic is amazing, no jargons. 👏👏👏👏👏👏👏I am grateful I stumbled on this.
I like the 3Fs: Fundamentals, Fun, Future. These groups help me to identify which things I must keep in the budget (fundamentals), which things are optional (fun) and how I'm going with long term savings (future). Very easy to use.
I agree Nisha. As a fellow accountant I had a similar spreadsheet every month of the year to take account of expenditure/income patterns. I also recommend regularly monitoring your bank accounts. I use IT for savings investments and tax returns. You can make Tax returns easier by collected the data through out the year. Cash savings use ISAs £20k a year income/gains tax
free. As well as running expenses keep a list of assets and liabilities. Well done Nisha with this clip.
A fantastic structured video on managing your finances. I've created my own to my needs but used the % for the 'money buckets' which is quite eye opening actually. In practice the hardest part about this exercise is the discipline to stick to the 'fun' and 'savings' bucket even if it is automated.
@nischa, you are always surprising me with your content. So simple, easy and valuable at the same time! I admire your work, you are doing a really good job!
Thank you Nischa for this video and added tracker! It has been just so easy to fill out and it was such an eye opener especially to see where most of my money is going to! Started this year with a lot more clarity on how my financial situation is at the present and where the options are for me to get it balanced in the coming year! I always have struggled with a variety of sheets and systems to keep track of my finances, but your easy and clear tracker , especially those percentages!!, just makes me coming back to it, even just for fun! Thank you so much for all your videos and all the work and love you put into them! 💖
When peopke told me everyone need a man or a suger momma , I say all we need is knowledge ! ❤ thank you nischa u are a true blessing !
Self love is the best form of love and self financial stability is the best kind of financial support 🎉
Really appreciate what you do for us Nischa. You really genuinely care about financial literacy. These pdf/videos/courses and other resources that you provide are such a welcome suprise. Thank you!
Exactly, what I needed today since it's the first of the month. I was just writing down my expenses while at work lol. I've just been writing things down on a lined sheet of paper when I'm at home. They get folded and misplaced all the time. I mean things get paid on time and I'm not drowning on debt but it's not consistent. Thank you!
Would love if you could do one around credit cards and the use of them. I recently got a lower credit score because I stopped using my credit card as much as I had in the past, just couldn't fathom that logic.
Thank you for such amazing, clear and simple videos Nischa :)!
Thank you so much for this! I always feel so overwhelmed with tracking/saving/planning. Have you maybe done a relevant video for freelancers or small business? That would be so helpful to start off!
I love her content and how she breaks its down and makes it easy to understand!
Nischa, I don't think words can explain how grateful I am for this video. I've been trying to get my finances under control for longer than I care to admit. But this spreadsheet has really got me dialed in and the future has never looked clearer. I've had spreadsheets before to track my income + outgoings, but this simplicity of this sheet hits differently. Thank you! I'll come back to this video in 6 months time when I'm finally debt free, and will continue to use the sheet!
Gosh just reading this now with the biggest smile on my face! So pleased!!
Hi Nischa. I got your sheet and it's really good. I was using a Notion free template but with yours, the "actual %" of the spending is a great way to track. Thanks for the share and your work. Cheers.
Thank you so much for this tracker, Nisha. I've already tracked my last month and can see now where I have to improve. Let's say there's work to do :D
Keep it up, I'm so happy that I found you!
It's a pleasure! Short-term pain, long-term gain :)
@@nischa I love "short-term pain, long-term gain." It's going to be my new mantra! Diane
Thank you for sharing the tracker. I love how simple it is. If you're a compulsive spender like I was, one thing that really works for me is having a separate debit card for spending on things like groceries, clothes, shopping, and eating out. I have a standing order with my main account which sends an amount once a month to my spending debit card. It really helps me save money on things that I don't need
i can't download the tracker any idea?
@jordanmabou962 did you click on the link in the description?
@@ladymallowyt ok i get it thanks
never thought about this!!this is an a mazing advise. my accounts are all over the place at the moment.
love this idea, thanks for sharing!
Should have watched the video sooner instead of saving it for later. I came up with a tracking Excel as well at the start of the month, but your sheet is way better. Thank you for making it available for free.
And I wanna thank you because it's thanks to you that I started monitoring my money this year, and my life has improved 😊
Can you use this spreadsheet on Excel? If yes, how do you open it in Excel as it is a Google spreadsheet?
@@nathanmoore7120 there's an option to download it. It will ask you in which format. And then you can use it as a regular file.
Thank you Nischa for this tool and wonderful explanation ❤ Watched it 3 times, but gladly its pretty short for the big value it makes. I have a different system for keeping track and plan my spendings, but tried this view and it gave me more understanding of how i could rebalance my money based on this 3f system. I did tweak the percentage values, i put 60/20/20 and this seems work perfect for me. I have small kid and working remotely, so i switched transportation to nanny in my essentials 😌
Great, as always, and so timely for me. Thank you so much for the tracker!! You saved me some time with that. Much love 💕 from Canada 🇨🇦
I think this is a great approach to make the Needs/Wants/Savings more practical and concrete !
Started tracking my money at age 22. It truely works if you do it on a daily basis! Same with tracking exercise and calories on a daily basis!
00:05 Effective money management is crucial to achieving financial balance and control.
01:39 Calculate your total income by including all sources of income and deducting taxes.
03:16 Allocate your net income into three buckets - essential needs, enriching experiences, and future investments.
04:57 Step Two: Month at a Glance - Fill in the color-coded columns for fundamentals, fun stuff, and future you.
06:32 Automate bill payments and categorize expenses for better money management.
08:04 Assign categories to your expenses and track your spending
09:44 Setting up automatic transfers into a separate savings account is recommended for paying yourself first.
11:11 Reflection on spending and adjustments for better financial management
Thank you for the tracker. Useful and informative. I have been watching your videos every sunday and now managing my money much better than before!
Thank you very much Nischa for making this template resource free to download. I'm a final year student and this will help me prevent lifestyle inflation. Thanks a lot !
Just downloaded the tracker.
I’ve used various ones throughout the years, but this one, especially with the percentages, is absolutely my favourite.
Thank you!
Can you share the tracker please? Link is not working
I really like how you have broken the budget up into the 3 Fs, thank you so much for making it easy and not intimidating.
Your videos are always so incredibly informative but I loved the organization and breakdown you provided in this one especially. Thank you for making finance and budgeting easy for the average person to understand.
Hi Nisha.. great content.. love that it’s not overwhelming or too long (for the algorithm) so easy to digest. Please can you let me know how many hours your workshop is for?
Thank you for this tracker! The video was easy-to-follow and actionable. I'd go a step further with the non-spending 'Fun' bucket using Peter Komolafe's approach of listing your non-essential spending in a hierarchy of importance.
I used to think that all non-essential spending needed to be cut down to max my income-expenditure gap but putting down the ones that mean the most to me (e.g., gym memberships) makes it easier to justify which non-essentials are worth keeping and which could actually be cut.
Love the content and how straight forward you are. Thanks for all you do!
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
At last, I have a clear overview of managing personal finance. Cordial thanks, Nischa🙏 .
Great video and spreadsheet! I think I really like it to use as a reset and review before the next month.
Where would you input spending vs saving for future expenses? For example I pay yearly property taxes, so would I put the amount I set aside each month in Fundamentals? Or self-development has both spending and savings amounts. Would those be both in Future You?
Thanks for another awesome video, already putting this tracker template to great use! Currently tracking at 60% each month for fundamental spending, and can see I really need to increase my future me expenditure! Question - does the UK do offset accounts for mortgages? I think keeping as much funds as possible in the offset account is better than moving any across into a high interest savings account in Australia. Thoughts?
I'm following you from my 3 accounts now, and I'm super glad i did . Great work with the worksheet! More power to you !!
Thank you Nischa for this video, so helpfully I was actually looking for this and then you popped up. Is this something you learnt whilst studying in finance. I studied fashion design as a degree and seriously feared looking at or managing money. I think that maybe taking up a fin nce course would be more ideal and actually help in grow my future. Also, i had started a similar approach however went in too hard and ended up developing burnout and being bed rideen for 3 years. Im now picking myself back up but with a healthier approach. How much mone do you think I should save realistically before starting to condider buying a first time house? Or which specialist should i discuss with currently im on Universal Credit. But plan on starting a job in a few weeks. Thank you again. Rose ❤ 🇬🇧
Nischa, in simple words “ YOU ARE THE BEST” keep sharing
Hello, really useful video. But I would like some clarification, previously i would just record all spending and put some money in savings (different account) randomly. Your method encourages you to state where you are putting all the income. So would the best thing to do, be fill it in with all expenses (fundamental and fun) to see how much is left over to be put in the future category?
I have been using something similar for a very long time, key note to take from this video is to analyse and reflect on your spending once completed the spreadsheet.
I keep coming back to this video because I’ve found it to be so helpful. Thank you so much Nischa
Great job Nischa! I just launched my personal finance TH-cam channel, and your video served as a fantastic source of inspiration! 🥰
You are like a motivational speaker. Very enjoyable. Uplifting to the disposition. Bravo!
I have a very similar excel sheet after getting tired of apps. It's the same as yours from the 3 categories to the 50/30/20 rule and automatic percentage. I do include a tick box which I go through each month. It's easier than creating a new budget each month.
This tick box version sounds interesting! Would you consider sharing a copy?
It is actually very important to have control over your expenses. Very helpful tips
I started filling in a budgeting book in 2020 and it really helped to focus my spending and making note of saving etc. I used to use spreadsheets but found that after working on a laptop all day, I never updated it daily but I do with my journal.
This is such a useful video Nischa! Can you make a video to explain step by step how taxes are paid in the UK for those that are doing side hustles/freelancing while still having a day job? I want to start a small business from home but the idea of calculating taxes is making me anxious. Thanks in advance! :)
Hi Nisha, I’ve been watching your videos and finding them informative. This one in particular is really helpful. Thank you.
Thanks for taking the time to make this video! How would you advise dealing with subscriptions where paying them once a year to save money instead of monthly?
Hi Nischa another great video I've always used Excel to budget it really does show where you are financially. I have a question I split from the ex and I bought her out which is costing me £1300 in loans per month on top of the mortgage would this class as future or fundamentals? thank in advance
You have to sign up to a mailing list to get the spending tracker, and also if you don't have the latest version of Excel not all of the sheet will work, as I've just found out.
Love it nischa. Thanks for the template.
I have the same excel sheet system but this is waaay better!
In my excel sheet, I can only see the percentages after the month is done - and regret the overspending I’ve done 🥲
But yours will show the progress as soon as I input the amount! Thank you for this, will surely use this asap!
Love your content as always! Cheers from the 🇵🇭✨
FYI, the biggest fail on credit card budgeting is failing to manage "unexpected" expenses. In my experience, most (but not all) unexpected expenses should be expected! People regularly spend money to attend weddings and funerals. People go on vacation. Household appliances break down. Cars need maintenance, etc. Don't put these types of expenses on a credit card if you cannot pay for it in full when the bill arrives. You need to fund a savings account (monthly) for unplanned, but not unexpected expenses, along with other infrequent expenses, so you will have an available bucket of money which will allow you to pay for unplanned and infrequent expenses, so you don't wind up maxing out your credit cards.
Thanks for the template, presentation and perspective. I appreciate it. Subscribed.
Awesome Nischa and keep up the great content! Doing this now but wish I’d started way, way earlier. Needs to be taught in school! 😎 I’ve been using an xlsx (similar) but I might migrate over to yours - looks cleaner 😄
Hey Nischa, thanks for this super helpful video, I have a doubt, where to add EMIs payment, in which F section?
Love how you explain things! Very calm and direct
Hi Nischa, thank you for this video. My husband and I have been tracking our income and expenses for 2 years now. We've just reassigned all of our expenses into these 3 categories but got stuck with understanding the Future part. What doesn't make sense to us is setting money aside for holiday in the future. What happens when we actually make that expense?
The same goes for my education in the past or our future house. I paid for my masters in 3 instalments but was putting money aside for quite some time but that was not an expenses until I actually paid for my studies. We're putting money into ISAs and saving accounts to save up the deposit but we never mark those as expenses - they're just moved into other accounts. Why would we mark them as expenses?
Thank you in advance!
I found your channel about a month ago and have been watching ever since and like it very much. This video is particularly good and I'm planning introducing your channel and this video to my son as he's going through some challenges right now. You are incredibly attractive, intelligent, and I absolutely love your accent and pronunciation of words (I'm in the US) altogether it's a killer combination. Keep up the great work and solid, relevant content Nisha! Thank you.
How have I not seen your channel before? I just downloaded the spending tracker and I will be studying it tonight. Thanks much. Diane
So helpful as ive just bought my own place so paying bills is quite new to me thankyou 😊
I also have "investment" bucket where I put 50% of my neto income. 40% goes on fundamentals, and 10% on fun. But can;t be doing that anymore :) After couple of years of doing so my income has raised 300%, but fun is still small, and my wife wants some luxury in our life (like a comfy bed, modern kitchen apliances and similar, noting fancy, just to stop living frugal life). If we do it for one and a half year more, our house will be fully paid off, and we will own bussiness that brings us new house every 3 years. I just can't do this to her, being on zero at the end of every month, so I plan to take a year off frugal living, buy all the stuff for house that are one time buy (like a new bed, apliancess, furniture (again, nothing fancy, something that works good, though), and have some funds alocated to the savings, so we have backup - THEN, I plan to pay off house - in next 3 years
I hope financiall situation in world will be good and I will also update my bussiness in those 3 years to raise the amount we bring home every month
This is awesome and super helpful, but how would you account for debt? Because right now, I don’t really have savings because all of my extra funds go straight to paying off debt. Would I put my debt payoff goals in the savings categories?
Thank you so much Nischa! I'm just about to change jobs and take a massive wage cut (50%) in order to do something else that makes me feel happier and healthier, yet I'm so worried that I won't be able to make ends meet. Your video and tracker have given me a starting point (and confidence) for being more in control and understanding not only how to make the most of what little I will have in the midst of massive rising costs, but also what I extras (if any!) I can afford.
Hey Nischa, love your videos but wanted to ask which funds you’re invested in please, ie global index funds and which one/s. Cheers 😀
Oh my gosh!!! I have a “budget to actual” excel file that I started when I was in college over 2 decades ago. It has made it through countless computer crashes and life changes. I showed it to my husband when we were dating and he laughed and said I was being way too organized about it. But now, if we ever want to do something like buy a car or whatever it is that would change our budget, he asks me if I have an updated budget we can look at….i always have it on the ready. I am an accountant also so I guess it’s just part of how my mind works hahaha! 😊
Thank you Nischa! Great planning tool. I am going to try it for 2024. I am loving it already.
My banking app automates this process of tracking your spending across different categories, which I find useful. The template is a good idea if your are serious about taking ownership of your finances. Looking forward to the free masterclass, and thank you in advance for sharing your knowledge.
Hi. Very simple but effective.
2 Questions:
1. If you use your credit card for most of the expenses (I. E. Dining out, Entertainment, etc) how would you categorize the paying the credit card expense and the fun expense without duplicating the amounts?
2. If you are paying off specific debt already, would that be fundamentals?
I would suggest you transfer your cc balance to a low interest loan and clear that debt and treat as a fundamental repayment (debt obligation) and any additional spending goes into its own column each month Then clear your cc balance each month via 100% direct debit so no interest paid
How do you track the expenses ? So do you manually key in the individual expenses into another excel sheet?
Thank you again Nischa! Love the lighting on your video, the feel is looking great.
omg congrats on 1 mil nischa!! you are so awesome in the personal finance space. keep up the good work 😊
Thank you for this, it was super helpful! Loved the editing of the video too!
Hi Nischa! Great video, I learned a lot. Curious - why do you choose to track your budget through a spreadsheet vs a personal finance application like Neontra?
Great template and explanation for managing money. Thank you for this and using this from today!
This was really interesting. Thank you. I already have a monthly excel for my budget, but I will try out the 50%, 30%, 20% Rule. :D
🥰 love it. Your template is simple. Mine I've downloaded and converted my bank statement as this is already categorized. Then I'm gonna follow your excel format with the fundamentals coming fr the bank statement. Now I can assess easily.
great content as always. I hope this will help you: start budgeting, simple excel spread sheet is enough. You will see magic then !
Being aware and in control of personal finances has lead to positive personal balance sheet and greatly reduced money related anxiety. When updating excel next time, gotta look through the 50-30-20 -lens.
Thank you so much for this. I tried to make the Google sheets myself and couldn't figure it out. I appreciate you!!!🥰
I downloaded your tracker a few weeks ago and we LOVE it. Thanks so much!!!
Nischa this is the best budgerter so far. You have made some before. I had some from other creators. But this one is so simple and easy to use! Exactly what I needed. Thank you! Btw there is a easily fixable mistake in one condition. The "actual %" of "future you" colour is supposed to be (J10) > but it actually (J10) < ..... That's why it's red when below 20%
I’m really glad! It’s meant to be that way round as it’s meant to flag up if you’re saving less than you aim to :)
Hi Nischa,
When adding pension contributions would you add the employer contributions as well or just the personal contributions?
Thanks for the great content!
Liam
I'm assuming it'll be our personal contribution as that's deducted from our monthly salary. 💜
This is fantastic. I will definitely be downloading this template. I'm about to go full time teaching at my martial arts academy. So this will be useful indeed. Thankyou for this video 🙏🏻
your videos have become my weekly routine
Does it make sense to setup a standing order for eeach reoccuring payment from your income account to expense account? (e.g netflix subscription, parking subscription etc) the prices of these changes and i guess i would have to update the standing order?
Nischa! I've been following you for a while now and have binge watched your videos for the last year, but THIS tracker has by far helped me with my finances. Thanks so much, it's really helping to shift my mindset!!
One question: Do I track expenses right after I get paid end of the month (so JAN 25th - FEB 25th) or do I track spending on a month to month basis?
This is such valuable advice ❤ definitely going to interpret this spreadsheet into my life
Nischa, you are so amazing! You make the future a brighter place ✨
Hi NIscha, thank you for all your tips! Very clear and practical! Keep up with your video's! Thank you!
This was so helpful! I love this content, thank you so much!
Great video, is there a spreadsheet which tracks actual spending which works along with the intentional spending tracker?
Thank you, Nischa! Using it now....very helpful!
Nischa: just started working with this tool, and it's already yielding valuable, actionable insights! Question: Say I go out to dinner and put the $100 tab on a credit card, then when I fill in the tracker, this gets lost in debt service. I assume that all these categories are cash-based. Debt service is a fundamental, but I incurred that debt in a "fun" category. How should I track this?
Question, how should I enter HSA (Health Savings Account) into this budget spreadsheet? I'd like to include it, but since it comes out of my own pay (pre-tax) it's not separate income and it's not an expense. Instead, it's like pre-tax funds that are moved into a separate bucket only to be used for medical/health purposes. Thanks -Jeff
This seems like a great tool, the only thing I can think to add is a "Remaining" section next to total, to see how much budget is left