Allocate your income

Helping you save stick loads.

I tried stretching my pay-cheque the other day and just couldn't do it. So I decided to use the envelope approach by allocating my pay-cheque into three categories – not that PAK'nSAVE pays me because everything they do, they do to save you money.

Divide up your cash and pop it into three separate envelopes. When the money’s gone, stop spending from that category. 

  1. No more than 50% of your income should be spent on your "must haves", i.e. things that you can't go without such as rent/mortgage, car, electricity, basic food and clothing, and so on.
  2. No more than 30% should be spend on your "wants", i.e. extra clothes, cinema, drinks, shows, fancy internet and cellphone plans (look for basic versions instead), holidays, new appliances, additional food (choose cheaper cuts of meat instead of lamb chops), birthday present for Stickman, and so on.
  3. 20% of your money should be put on "savings". You can choose the type of investment like savings accounts, shares, bonds, PAK'nSAVE Christmas Club...

Making sure you stick to your diet or, should I say, your budget.

Budgeting is the financial equivalent of going on a diet. Not that I need to go on one. Stick people can eat as much as they like and never get fat – that’s because we’re made of sticks. Anyway, budgeting means you'll have to make important lifestyle changes on how you allocate your money.

Make sure you truly understand that you'll not be able to make frivolous purchases on a whim like the good old days. Your money will now have purpose. You'll have to make certain every dollar fulfils its intended purpose if you're to stick to your spending plan. Invest the time to mentally prepare yourself before your budget is created. By taking the time in the beginning to set your priorities, you'll be more likely to stick to your budget even during the difficult moments.

What else can I do to keep within my food budget?

You can buy a very small wallet, so you can only put a little money in there. I tried this once and it worked really well. Or you can make a shopping list and buy only what you need. Keep a calculator with your shopping list and use it to compare prices and check totals.