How to increase a saving budget in 5 steps

    

    Creating a budget is a great way to track your finances in order. The step below shows how you can accomplish this important task to achieve increase your financial goals.

1. Calculate your income

    The first step is to find out how much money you make each month. The amount of money you earn must exclude taxes is known as Net-Income.

    For example: You ( as a resident) earn 3 million KHR in a month (income) . By the Law of Taxation, you have to pay tax at 10% and less 165 000 KHR  (in 2022 only). So you will pay tax:

= (3,000,000 * 10%) - 165,000 = 135,000KHR

Your Net-Income will be 3,000,000-135,000 = 2,865,000 KHR

2. List expenses

    Keep in mind that expense will reduce your budget when it increases its amount. Here are some common expenses:

• Rent or mortgage payments
• Loan payments
• Insurance
• Utilities (electricity, water and gas)
• Phone, internet, cable and other subscription fees
  
• Groceries
• Transportation (gasoline, train tickets...)
• Household goods
• Dining
• Travel
• Miscellaneous 

    Let us say all the expense above is going to be 1,365,000 KHR.

3. Calculating Saving Budget

    Saving Budget in this case refers to the leftover money less tax and expenses. Thus, based on what are given above, your saving budget will be

=  2,865,000-1,365,000 = 1,500,000 KHR

4. Adjusting Budget

    In this step, you are going to fix either one of the elements, Income or Expense, or maybe both of them compared to The budget of the previous period. It is also very important to know the trend and figures of the previous budget and the expected rate that you want to increase. For Instance,  the saving budget of the previous month is 1,500,000 KHR and you expected it to increase by 1.5%. In that case, you expected budget will be:

= 1,500,000 *(100+1.5)% = 1,522,500 KHR

Amount to Increase based on the previous budget:

=1,522,500 - 1,500,000= 22,500 KHR

5. Set more actions

Many questions must be made based on your situation or preference. For example, For those who want to increase the value of Income, you should consider these.

Is it possible for me to get a side hustle? 

should I change the Job? 

Should I have more investment?

Should I ask my boss for promotion?

For those who want to increase the value of Expense, you should consider these.

Is it possible to reduce your expense? which one?

What are the consequences  after I reduce it?