How to Make a Budget You Can Follow

In actuality, a money management strategy does not require you to sacrifice everything you hold dear. By giving your money a purpose, you can take charge of your finances and stop wondering where it went at the end of each month.

Learning how to budget in Pakistan 2025 is more crucial than ever, whether your goal is to save for a new phone, plan a trip, or simply to stop worrying every time a bill comes up. A practical money management plan is crucial in light of growing costs, market swings, and changed lifestyles.

Making a budget that truly works for your life is the main goal of this article. Don't cut off all of your desires in an unrealistic manner. These recommendations are straightforward, practical, and made for everyday living, regardless of whether you're a student, working professional, or running a household.

How to Make a Budget You Can Follow

Budgeting is frequently seen negatively. The majority of people believe it means giving up everything they want, including weekend activities, dining out, and tiny indulgences. However, that isn't true. Joy should be a part of your money management strategy, not something that takes it away.

Step 1: Track Your Real Spending for 7 Days

You must know where your money is going before you can make a budget. The little things mount up quickly, even though most of us believe we know. That Rs. 3,500 impulsive purchase on Daraz, Rs. 1,000 delivery order, or Rs. 250 chai might subtly upset your budget.

What to do:

• Keep a record of every single expense for the following seven days.

• You can use Google Sheets, pen and paper, or apps like Spendee, Wallet, or Money Lover (which support local categories and PKR).

• Sort spending into categories (such as food, transportation, bills, and entertainment) to identify patterns.

This brief, targeted audit serves as a reality check for you. It's about recognizing your true lifestyle, not about guilt or judgement.

Step 2: Pick a Budgeting Method That Fits Your Style

Different people have different opinions regarding money. While some people appreciate flexibility, others adore structure. Therefore, choosing the appropriate budgeting technique is crucial. Depending on your objectives and personality, try one of the following methods.

The 50/30/20 Rule (Suitable for Beginners)

• 50% for necessities (rent, groceries, and bills)

• 30% for wants (shopping, Netflix, eating out)

• 20% for debt reduction or savings.

If you desire balance without overanalyzing categories, this approach is excellent.

The Envelope System (Excellent for Budgeting with Cash)

• You physically separate the cash and establish limitations for each category (or use digital wallets for virtual envelopes).

• You stop making purchases in that category as soon as the envelope is empty. It works effectively for people who tend to overspend or in an environment where most money is paid in cash.

Budgeting with Apps

• Track your income, expenses, and savings objectives automatically with apps like YNAB, Monefy, and Notion, or locally with Budget Planner PK.

• Some programs allow you to take a more detached approach by syncing your financial accounts.

Step 3: Set Weekly Spending Limits, Not Monthly

It's easy to overlook monthly budgets, let's face it. The majority of us work hard during the first week following payday before rushing for the next three. Weekly limitations are therefore more effective. Divide your monthly earnings and outlays into weekly portions.

For example:

• Try to spend about Rs. 5,000 each week on meals if your monthly budget is Rs. 20,000.

• The same is true for other categories, including grocery, transportation, and entertainment.

This enables you to make real-time adjustments and stay on course. Additionally, you can adjust your spending in the following week if you go over budget in the previous one without ruining your entire month.

Step 4: Automate Your Savings

Saving money should be a priority from the beginning of your plan, not an afterthought. What's the simplest way to save money? Make it automatic.

As soon as your paycheck arrives, set up an automated transfer from your primary account to a savings account. Small quantities are important. Start with a paycheck of Rs. 2,000 or Rs. 5,000.

Set savings targets and utilize round-up capabilities by utilizing digital bank features or fintech apps such as Zindagi App, NayaPay, or Sadapay.

Tools to Use

With the correct resources, creating a budget may become a habit you truly love rather than a chore. Simple programs like Google Sheets or Excel work well for creating personalized budgets and visually monitoring spending. There are many free templates available online, and sharing them with a spouse or family member is simple. Notion is an ideal choice if you like more interactive and graphic content.

Downloadable Spreadsheet for Budgeting

To help you get started, I've prepared a downloadable budgeting spreadsheet template, which you can use to track your income and expenses and set financial goals. You can personalize this sheet according to your needs, whether you're a student, working professional, or managing a household. [Download the Budgeting Spreadsheet here].

PK Pakistani Household Examples

Let’s look at a sample monthly budget for a typical Pakistani household:

Income:

• Monthly Salary: Rs. 80,000

Expenses:

• Rent: Rs. 20,000

• Groceries: Rs. 12,000

• Bills (Electricity, Gas, Internet, etc.): Rs. 6,000

• Transportation (Fuel/Car maintenance): Rs. 5,000

• Dining Out: Rs. 3,000

• Entertainment (Movies, Shopping): Rs. 2,500

• Savings: Rs. 5,000

• Debt Repayment (if any): Rs. 3,000

• Miscellaneous (Impulse purchases, etc.): Rs. 5,500

This budget ensures that essentials are covered, while leaving room for some flexibility in the budget for discretionary spending, and most importantly, savings.

Sources

1. Government of Pakistan – Economic Survey 2024 – Budgeting in Pakistan (2024).

2. Money Lover App – How to track your expenses with apps.

3. Notion Template Gallery – Budgeting for better financial management.

Disclaimer

The figures provided in this article and the sample budgets are indicative and based on a general idea of typical spending patterns in Pakistan. Actual costs can vary based on individual circumstances, lifestyle choices, and income levels. The tools and methods shared are designed to assist you in managing your finances but do not guarantee financial success. Always consult with a financial advisor for tailored advice suited to your personal situation.

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