Step 2: Set your priorities
Basic mobile subscription
Childcare services (if you have dependents)
Life insurance (if you have dependents)
Basic medical insurance
Basic household equipment
Private medical treatment
High-end medical insurance
Decide on a few priorities for your budget next month. Use the diagram above to help you figure out your priorities in the short– and long–term.
- Needs (Necessities)
Your needs are the important items that will get you through your daily life. These are the things you need in order to live such as food, shelter, transportation, etc.
- Wants (Extras)
Wants are things you desire for pleasure or convenience, while needs are essential for survival. Eating home-cooked food is a need, while eating out is a want. Driving a car can be a need, but often it is a want due to personal preference.
Consider items you will need to spend money on in the next few weeks or months.
Long-term items are items you purchase that you will use over the next few decades.
By thinking about what you need in the short– and long-term, you’ll have a better idea of how much you will need to save for the future.
We’ve included some examples in each section to help you get started, but feel free to make any changes to suit your own situation.