Living well on a budget is the main topic of this blog post.
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I still remember my very first salary; I used to work at McDonald’s as a cashier before Covid-19 hit the world and stopped everyone’s normal daily routines, including jobs.
Here in Italy salaries may differ a lot from other countries, but I think I speak for everyone that when starting our very first job we can feel a bit nervous about everything, really. Although, I would have appreciated a little bit of help with money management at that time, and not just the usual “don’t spend too much”.
So, with this guide I’ll offer you practical strategies for not just surviving, but thriving on a entry-level income. Today we will tackle:
- Creating a realistic monthly budget
- Housing budget hacks
- Food strategy that actually works
- Slowly, but saving money
- The meaning of good life on a budget
Creating A Realistic Monthly Budget
Okay then, let’s start with a realistic monthly budget. Here in Italy, according to Google, the average salary is €2,625 per month with taxes. But in reality, it is way WAY down because my average salary when I started working used to be €800-900 every month. Although, it really depends on where you live and work.
It’s important to understand what is your financial foundation so you can have a practical breakdown of where your money is going. So, let’s say your salary is €1400, which is what I made on average from my last job. Your monthly should roughly look like this:
- Housing: 30-35% (€420-€490)
- Transportation: 10% (€100-€140)
- Food: 15% (€190-€210)
- Utilities: 10% (€100-€140)
- Savings: 10% (€100-€140)
- Everything else: 20% (€200-€280)
Housing Budget Hacks
Normally, housing is the one that takes the biggest bite out of your income. So, here is how you can make it work:
- If you’re sharing a house/apartment with roommates, it’s important that you find people who share similar living habits. Also their cleaning habits and bill-paying history because I’ve been there and trust me when I tell you that cleaning habits are very important. Then, be sure to track all of your shared costs so that you don’t get “surprises” if either one of you forgets to pay something, you can use shared spreadsheets or apps like Splitwise.
- If you’re looking for an apartment, be smart about it; just because it’s cheaper doesn’t mean you’ll save money, not if you have to take a train and a bus every day just to go to work. Same thing with utility bills; newer appliances and a well-insulated home will save you a lot of money on the long run.
Food Strategy That Actually Works
Meal prepping is nice, but not everyone has the time (and, honestly, the will) to do it. So, build a food strategy instead:
You may say “That isn’t really on budget “, but hear me out first: it’s not only about organization, but also preventing food waste, thus preventing waste of money. Create your own pantry with ingredients that can be used with multiple dishes. For example, it can be pasta, rice and spices.
Extra tips to save money on food:
- Store loyalty apps for personalized deals. These are literally my lifesavers, I use an app to have all of them in place called Stocard.
- Learn which item is cheaper when bought in bulk, because not everything is.
Slowly, But Saving Money
Saving money while being on a budget it’s a real thing, although it can be quite tough for some because most of us think that with less money less savings. But the point is you can save money even with a small income. Slowly, yes, but you can.
Start small, like a fund goal of 1000.
Why 1000?
- It’s realistic and the most achievable for many
- It covers small emergencies like car repairs and urgent medical bills.
And once you hit that, start to focus on building a larger fund. And by larger I mean at least three months of your basic expenses. This doesn’t include expenses like shopping and entertainment. So, for example, if your monthly basic expenses are 1000, your goal should be at least 3000.
Why 3 months?
- It will give you a comfort zone if you ever lose your job
- You’ll be able to handle multiple emergencies
- You’ll have less financial anxiety.
What Does Good Life On A Budget Mean?
There this widespread belief that having a good life means spending tons and tons of money on things you like, when really it’s all about handling your resources with intention:
- Create a “fun fund”
Set aside a small amount every month because it’s nice to buy nice things for ourselves from time to time, of course. But also, entertainment can also be obtained for free; look for free days at museums, explore parks and public spaces with friends and family, host potluck dinners at home instead of eating out, and many cities offer free concerts and events (especially during the summer and winter months).
Final Reflections
Having a “good life” on a budget isn’t about depriving yourself – it’s about being smart with your money. To do that, track your spending for a few months to truly understand your patterns. Most of online banking apps have built-in expense trackers, but you should use budgeting apps and track your expenses manually because online banking apps don’t track expenses made by physical cash.
Learning skills is another way to start living well on a budget. Skills like cooking and cleaning will benefit you regardless of income level. I know, cleaning sounds a bit ridiculous, but you would be surprised how many people spend boatloads of money on hiring someone to clean just because they don’t want to.
Drop a comment down below and let me know if you have any other tips about living well on a budget!
Note: This blog post contains affiliate links, view the disclosure for more information.
Living well on a budget was the main topic of this blog post.
