200. John's Budgeting 101 Series #8: Analysis Time (Making some decisions)

The time comes for us to do the first round of analysis based on the income and expenditure that you have collected from last year and the first few months of 2022. Pls note that this is not a one time effort, you will need to do this at least every 6 months to cater for changes in your life as well as decisions you may want to change.

Income

1. Ask yourself: is your main source strong enough? What are some ways you want to moderate it? Want more? How do you aim for it? Promotion? Increment? What must you do to achieve it? In what timeframe? How much effort do you need to put in? How about your other income sources? The amount is okay? If you want an increase in income but do not want it to come from your main source, then it has to be an alternate source. Which is best for you? Rental? Investments (shares, Unit Trust, Bonds, FD)? Others?

Expenses

1. What are the main areas of expenditure? What are your essentials? Make sure these are all covered by your main source of income, at least. Anywhere you can trim? Same quality at lower cost? You may need to do research here

2. What are your variable areas of expenditure? Same questions as above (1)

3. What are your purely discretionary areas of expenditure? Have enough to comfortably spend here? If no, need to trim.

Income (again)

1. Review based on your findings above

Expenses (again)

1. Review based on your findings above

Decision Making:

1. Make one income generating decision and try it out.

2. Make one expenditure trimming decision and try it out.

Revisit this and do this every few months, small steps, gradual steps.