Changes to my budget
My budget has been working well. I've consistently come in under budget (by an average of about $50). I'm going to try reducing the amount of money I have for general expenses by $10 (I could maybe reduce it by more, but I want to take it slowly). I am also going to change the way I allocate the money I save.
Currently I have been saving $100 per week. Of this, $75 goes into savings and $25 into a holiday fund. If I come in under budget I can use the excess any way I want, though I've usually been splitting it between savings, holiday fund and an emergency fund.
Now though, I think I'm going to concentrate on building up an emergency fund (to cover unexpected payments and to provide a backup in case it takes me time to find a job after uni). I would like to have enough to cover rent and general expenses for at least 3 months. I think this can be achieved with about $3000. So my main priority at the moment is to build this $3000 emergency fund. After this I am going to move on to savings. The full $110 I save per week will be used in this way.
I will not be putting a guaranteed amount away for holidays, etc., but instead I will use any money I have left over from my weekly budget for holidays and anything else I want to spend money on (I'll call this short-term savings). This should give me sufficient incentive to continue coming in under budget.
So here's how I'll spend the $360 I get paid per week:
Rent - $130
Emergency fund - $110
General expenses - $120
Of the $676 I have already saved (my current net worth), I will allocate $107 for the remainder of this week's general expenses, $114 to kick off my short-term savings and the final $455 will start my emergency fund.