A 24-year-old assistant buyer earning an average salary has offered a glimpse into how she budgets her money every month.
Hannah Koumakis, from New Zealand, has created a series on social media called “No longer broke” where she teaches young people from Generation Z how to be money smart.
In her latest video, she explains how she splits her monthly income into 16 bank accounts to ensure she stays on top of her living expenses – including rent, fuel and groceries.
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“It’s payday and I’m going to show you what I do when I get my money every single month,” she said in a now-viral video.
“I’m on a very average salary. I kid you not, it’s below the New Zealand average but I still make it work and I still manage to save money for so many different things.
“It’s just second nature and it’s so cool to be able to pay off the things that you need to.”
Hannah Koumakis has offered a glimpse into how she budgets every month. Credit: Hannah KoumakisShe explains how she splits her monthly income into 16 bank accounts to ensure she stays on top of her living expenses. Credit: Hannah Koumakis
Hannah shared a detailed breakdown of where all her hard-earned cash goes.
Her bank accounts include rent, mortgage, petrol, groceries, entertainment, shopping, holiday, emergency, short and long term savings and more.
She’s currently “rentvesting”, a popular strategy where buyers rent a property in an area where they want to live while also paying off an investment property.
“I am renting with five other housemates, I pay $185 ($A170) per week in Auckland then I’m renting out my investment property,” Hannah tells 7Life.
“The reason why I do this is because my investment property is two hours away from where I work.”
For rent, she sets herself a budget of $788 ($A725) every month, which covers her living expenses – rent, bills, groceries, and cleaning supplies.
“My flat money is not accumulating, it’s a set expense,” she says.
For rent, she sets herself $788 ($A725) every month, which covers rent, groceries and bills. Credit: Hannah KoumakisFor food, she sets a budget of $250 ($A230) per month. Credit: Hannah Koumakis
Hannah had $50.95 ($A46) remaining in her account from last month so she only transferred the difference to bring the total back up to $788 ($A725).
For her mortgage, she already had $3271 ($A3008) in her account.
“I then have my house account which is money that pays off my mortgage and I set aside $1100 ($A1011) towards my mortgage per month,” she said, showing the new total was $4421.
In her petrol account, she always sets aside $280 ($A255) per month.
Because there was already $130 ($A120) left over from last month, she only transferred the difference.
”I only spent $150 ($A135) last month. The fuel account is not accumulating so instead of adding on an additional $280 ($A255), I’m just adding the difference,” she said.
For food, she sets a budget of $250 ($A230) per month.
As there was $128.20 ($A118) left over from the previous month, she transferred the difference, bringing the total back to her budget.
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Every month, she sets aside $280 ($A255) for fuel and $30 ($A27.50) for car expenses. Credit: Hannah Koumakis
For entertainment, Hannah says she always adds $50 ($A46) to her account.
“I did go skiing so I used my money from my entertainment account. This is accumulating which means my $50 that I set aside adds on to last month’s total,” she said.
Her “Other” account covers phone bills and “anything else” for which she hasn’t budgeted.
“I allow myself $80 ($A73.50) a month and that’s obviously accumulating,” she said.
Retail therapy is essential, and Hannah sets aside $150 ($A138) per month for her “Shopping” account.
“My shopping is definitely accumulating,” she said, showing how her last month’s balance was $10.56 ($A9.70).
She transfers $30 ($27.50) to her “Car expenses” account, which she accumulates every month, bringing the new total to $61.07 ($A56).
There’s also room to be altruistic – Hannah says she tithes $527 ($A485) to her church.
“It’s such a blessing to be in a position to give back,” she said, explaining: “The churches are designed to give back to the community.”
She also transfers $50 ($A46) into a “Blessing” account, which accumulates.
For shopping, she sets aside $150 ($A138) per month. Credit: Hannah Koumakis
“The blessing account is to give back to friends if we go out for coffee or buy flowers if someone goes through a hard time,” she said.
Hannah adds $125 ($A115) per month into her short term savings account.
“This is anything that I want to buy that is a depreciating asset,” she said.
For her long-term savings, she has three different accounts.
Her first is a “Piano” account, with which she has already saved $1026.77 ($A944).
“I really want a baby grand piano but it’s like $5000 ($A4600) so I’m starting to save quite young. I put aside $35 ($A32) per month,” she said.
Her bank accounts include rent, mortgage, petrol, groceries, entertainment, shopping, holiday, short and long term savings. Credit: Hannah Koumakis
In her “Holiday” account, she sets aside just $70 ($A64) each month, bringing the new total to $3110.34 ($A2860).
As she pays for her insurance annually, Hannah starts putting aside $95 ($A87) in the months leading to the due date.
“I pay for my insurance funds annually to save money but I set aside the amount of money that would actually cost me,” she said.
“I put aside $95 ($A87.50) per month so that when it actually comes to the time that it’s due, I have money.”
So far she has accumulated $353.09 ($A325) in her “Insurance” account.
And in case of emergencies, break glass – Hannah has an “emergency fund”, already with $2000 in it.
“It honestly depends on how much left over money I have from my other accounts so this varies a lot,” she tells 7Life.
“If I earn money through selling clothes one month, then I tend to transfer it there.”
Hannah says whatever funds she has left in the balance goes into her “eftpos” account.
“This month leaves me with $30 ($A27.50) over because I always allow myself $50 in my eftpos account,” she said, showing the new total is $83.21 ($A76.50).
“And there you have it, that’s how I budget,” she said.
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