Budgeting, Lifestyle, Money Mindset, Personal Finance

Money Mistakes I Made in My 20’s

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Hello friends,

Today I’ll be sharing with you some personal finance stories from my 20’s – or shall I say, my early 20’s!

This topic has often been on my mind, but I’ve always been a little hesitant. As a believer in the Law of Attraction – which encourages manifestation of your best life through thoughts, actions & beliefs grounded in positivity, gratitude, and living in the present – it has always felt unconducive to dwell on the past and on mistakes.

But, I believe reflecting on the past can be incredibly valuable. If you look back on your past self and dislike who you were, or where you were in life, it’s a sign that you’ve grown and become a better person since then. Your growth is what makes it possible for you to have that realisation. It’s the same with personal finances.

So, I’d like to introduce you to the hot mess I was in my early 20’s, and the freeing changes I’ve made since. You could even call it my own financial #glowup! Please note these are definitely not all overnight fixes; whether they’ve taken weeks, months, or years to improve upon, they are all things younger me could have done better over the last 8 years. By the way, do y’all like my cute 90’s inspired scrapbook collage?!

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Budgeting, Money Mindset, Personal Finance

How to Live on 80% of Your Income

When it comes to budgeting your money, it can be confusing to know where to start. How much should you be spending – and what should you be spending on? How much is ‘normal’ to spend on everything in your life, from your rent or mortgage, your car, entertainment and eating out?

If you have no idea where to start, or would just like to refresh your money mindset and give your budget a makeover, here’s a super simple budgeting rule: the 50/30/20 rule.

If you have a 50/30/20 budget, that means that:

50% of your net income goes towards needs;

30% of your net income goes towards wants; and

20% of your net income goes towards your financial goals, like paying off debt or buffing up your savings.

Let’s say that I bring home $1500 every fortnight. Ideally, my budget would look like this:

$750 (50%) for my needs;

$450 (30%) for my wants; and

$300 (20%) for my financial goals

So what does this mean? Because 50% goes towards needs and 30% goes towards wants, that means that 80% of your budget is allocated, leaving you with 20% to grow in your personal finance goals. Of course, if you can increase that 20% to 30%, 40% or more, even better! In an ideal world, right?

What it means for you is that you need to learn to live on 80% of your income. Here’s how I did it, and you can too!

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