A budget you can maintain
Separate spending, planned saving and the room left in your month.
The main idea
Begin with net income: the amount actually received after tax and deductions. List your regular spending and include predictable irregular bills. A useful budget reflects your own situation rather than an idealised month.
Prepare your inputs
Convert annual or semiannual bills into monthly provisions. A €600 annual insurance bill requires €50 per month; a €240 bill every six months needs €40. The bills have not become more expensive—you are recognising them before they arrive.
A worked example
For €2,400 of income, €1,650 of expenses and €300 of planned saving, the free margin is €450. Adding those €90 of monthly provisions leaves €360. The calculation does not guarantee that actual spending will match the plan.
How the model works
Planned saving is a budget allocation, not money left over by accident. A negative free margin means your allocations exceed income. Adjust the spending or saving assumptions until the plan reflects what is feasible.
What to watch for
Watch for double counting: a purchase charged to a credit card and the later payment settling that balance are not two separate purchases. Keep the same monthly period and use a consistent categorisation method.
Review your decision
At month end compare the plan with actual movements. If a category regularly differs, update the estimate. With variable income, test a lower-income month before committing to a fixed saving amount.