Jonathan and his wife Jennifer had two kids (Katie and Paul). They are both working class couple. Jonathan in his early 40’s works with a telecommunication company as a sales manager and earns #150,000 per month, Jennifer in her late 30’s works as front desk officer, earns #70,000 per month. In two to three years’ time, the kids will be in secondary school.
Jonathan and Jennifer decided to plan their finance using the 70/30(10/10/10) strategy. Children school fees, feeding, debt (rent apartment), transport, utility bills, rent, cable network, travelling, entertainment, business skills and others.
They put their finance together for the upkeep of the family. In putting their finance together for clarity and honesty sake, they added up their finance together #220,000.
SCHOOL FEES: ——— #60,000
Katie and Paul fees and all expenses is #60,000, every term (every three months). The school is one of the best and of standard around the vicinity. In changing the children’s school, they school fees reduced from #75,000 to #60,000.
FEEDING: —— #15,000
Jennifer prepares the meal and everyone carries food to their various destination to also help cut down eating outside and accumulating more expense.
DEBT (HOUSE RENT LOAN): ——- #10,000
They had to move out of their formal two bedrooms flat to another one (lesser in price) in a location a little closer to their place of work and It helps adjust their finance. They took loan from their bank to payback before the end of the year with interest rate. This amount is deducted from their income monthly.
RENT: —– #10,000
They decided to budget this amount for their rent so as not to get stressed for the house rent and avoid being in-debted for months before rallying around to pay.
UTILITY: —– #5,000
From electricity, cable network, water, security rounds up to this amount. It’s either higher or lower based on how the bills come in each month and must one way or the other balance his budgeting.
They budgeted for transportation because of price fluctuation and most times walk distance that’s trekkable to work.
BUSINESS SKILL: —-#5,000
They both registered for a class to help focus on side hustle to help the family income and make money for the family because the family needs will grow as the years pass and inflation will also affect things. They decided to focus on fishery business.
PROFESSIONAL COURSE: —-#12,000
Jonathan decided to start a professional course. Project management to help plan for a career path and growth in his company. He needs to upgrade himself to get a pay raise and bonus to which will impact his financial goals positively.
Jennifer registered for her three- month course to help get a change of job for a better one. Her current job is totally unstable and might fold-up before the end of two years or less because of economic policy and atmosphere.
They had to create time for each other and for the family once in a month. To interact with each other and spend time together with the kids too, hang out occasionally with friends and family. They go shopping, if no outing that month, to upgrade their clothes and that of the kids. They visit many stores and look for the one with the best market price and the budget created for the shopping.
They create time to travel to visit their parents once in 4-5 months to know about their well-being and work purposes might take Jonathan outside the state occasionally.
This is for urgent expenses and emergency issues that ought to be tackled
Jonathan and his wife pay 10% percent of their salary to their place of worship monthly, they pay separately. They believe, it opened the door abundance and its gives them the opportunity to contribute to the growth and expansion of a great course, helping the needy and they have been really blessed.
When they receive alert form their income, they quickly automate to their joint personal savings account before they withdraw any amount or pay any fixed expenses. Their saving has really grow extremely well over the years. They also pay into their retirement savings and that’s taken care of by their employer.
The couple were approached by an investment firm that enlightened them on investing in mutual funds, T-bills, stocks, bonds and others. They decided to pick money market funds and have seen and monitor their investments on the company’s app. They saw the money grow and they feel happy and comfortable about it, they visit the firm occasionally and they are assigned to a financial planner who’s of great help to them and they plan on buying into other investment before the end of the year.
This was how the couple planned their finance and budgeted their money to achieve their financial freedom and for emergency cases too and cut their excesses in many ways and moved it into where it would be useful and helpful to ease the family financially.