personal finance guide

“If you don’t know where you are going, any road will get you there.”
Alice in Wonderland

This quote is quite right! It doesn’t make any sense to start walking if you have no clue where you are going. If we apply this principle to our “Financial Survival Project”, we need to know how much money we need before we worry about how to make it. That’s why I need a Budget.

My Personal Budget

I’ve been doing some research and that’s my final budget (in Euros) for my life in Munich.

• Rent= 350€
• Food= 180€
• Transport= 20€
• Miscellanous= 60€
• +10% = 61€
• TOTAL = 671€

My Personal Budget reviewed

Obviously I will renounce to many “luxuries” by adopting such a strict budget, but I prefer to get use to a tight budget and then relax it if things are going better than expected.

• Rent:Munich is a really expensive city on this regard, so I decided to go for house sharing. I’ll try to get a room all included for a maximum of 350€. By all included I mean, Internet + utility bills. If I can get something cheaper, better, but I want to feel comfortable at home. If I need to cut my budget down rent won’t be the first category I’look into.
• Food: I calculated 6€ a day, 6 times 30 is 180. I think it should be more than fine. In Germany students have access to a special Canteen called “Mensa” where food is good and cheap, you can have a nice meal for 3€. Other than that I’ll be buying raw ingredients and cooking at home.
  Yep, you’re right. I won’t be seen in a restaurant for a long long time,… maybe as a waiter… who knows
• Transport:To get around in the city is not that cheap, that’s why I decided I’ll walk everywhere. It’s healthy and cheap, you just need to plan a bit in advance. I budget 20€ in this category for special occasions, getting late to an exam or getting trapped under 3 meter snow.
  I will try to rent a room near the University and near the city center so I can walk to all places I will need to go.
• Miscellaneous: Shampoo, toothpaste and beer from time to time will fit into this category.
• +10%: Unforeseen costs would fall into this category.

That makes a total of €651.

Personal project start date: 15th April

The actual project will start on the 15th April 2010, until then and until I can start making some money in Munich I will stretch my savings as much as I can (€1400). That will reach to pay the University fee (€600) and to make it until mid May.

Next Step: Where can I sell my skills?

Best regards,
Javier

Tags: finance survival, personal finance