You have finished the budgeting module of Mondosol’s Make Money course. In this review, Kofi puts the seven lessons side by side, shows how they fit together in one simple monthly plan, and ends with a short quiz so you can check what stuck.
Read the article, watch the videos, or press play and listen.
In this article
The 7 budgeting ideas in one page
- Your first budget. Write down what comes in, what goes out, and plan the difference before the month starts. Read the lesson.
- The 50/30/20 rule. A simple starting split: about 50% for needs, 30% for wants and 20% for saving or paying off debt. Read the lesson.
- Tracking your spending. A plan only works if you compare it with what really happened. Read the lesson.
- Emergency funds. A cash buffer turns a surprise bill into an inconvenience instead of a crisis. Read the lesson.
- Avoiding debt traps. Interest makes debt grow, so paying only the minimum keeps you paying for years. Read the lesson.
- Smart shopping. Compare unit prices and cost per use, and wait before buying wants. Read the lesson.
- Budgeting tools. Notebook, spreadsheet, bank app or budgeting app: the best tool is the one you keep using. Read the lesson.
Put it together: one month with Kofi
Here is how the seven ideas work together. The numbers are made up to show the idea. Imagine a monthly income of 15,000 kr after tax.
| Part of the plan | Share | Amount |
|---|---|---|
| Needs (rent, food, transport, phone) | 50% | 7,500 kr |
| Wants (eating out, hobbies, games) | 30% | 4,500 kr |
| Saving and paying off debt | 20% | 3,000 kr |
| Total | 100% | 15,000 kr |
- Week 1: move the 3,000 kr for saving on payday, before spending anything else.
- Every week: spend five minutes checking what you spent against the plan.
- Emergency fund goal: three months of needs is 3 × 7,500 kr = 22,500 kr. At 3,000 kr a month, that takes about 7.5 months.
- If you have card debt: pay more than the minimum first, then build the fund.
- End of the month: look at what went over, adjust next month’s plan, and keep going.
Common mistakes to avoid
- Making a plan so strict that you give up after two weeks. Leave room for wants.
- Forgetting yearly or irregular costs, like insurance, birthdays or a new phone. Set a little aside each month.
- Saving “what is left” at the end of the month. Usually nothing is left. Save first.
- Using your emergency fund for wants. Keep it for real surprises.
- Changing tools every week instead of building a habit.
Watch: budgeting basics
Video: “How to Make A Budget | Budgeting for Beginners” by Elena Taber, on YouTube.
Video: “How to create a budget: the 50-30-20 rule explained” by GoHenry, on YouTube.
Quick quiz: test yourself
Open each question to check your answer.
1. Your income is 20,000 kr. Using 50/30/20, how much goes to saving and debt?
20% of 20,000 kr = 4,000 kr.
2. Why save at the start of the month instead of the end?
Because spending tends to grow to fill whatever is left. Saving first makes sure it happens.
3. What is an emergency fund for?
Unexpected, necessary costs like a broken phone you need for work, a dentist bill or a gap in income. Not for sales or holidays.
4. What happens if you only pay the minimum on a credit card?
Most of the payment goes to interest, so the debt shrinks slowly and costs much more in total.
5. Rice costs 35 kr for 0.5 kg or 59 kr for 1 kg. Which is cheaper per kilo?
35 kr ÷ 0.5 kg = 70 kr/kg, so the 1 kg bag at 59 kr/kg is cheaper (if you will use it all).
Try it: your one-page money plan
- Write your monthly income at the top of a page.
- Split it with 50/30/20, or your own version.
- Write one saving goal and the amount per month.
- Pick one tool and one weekly check-in time.
- At the end of the month, change one thing and try again.
FAQ
Do I have to follow 50/30/20 exactly?
No. It is a starting point. If your rent is high, needs may take more than 50% for a while. The habit of planning matters more than the exact numbers.
How long until budgeting feels easy?
For many people it takes a few months of weekly check-ins. Each month the plan gets closer to real life.
What should I do first if money is tight?
List your needs, track spending for one month, and look for one or two costs you can cut. If you are struggling with debt, talk to a free debt advice service in your country.
What comes next in the course?
The next module looks at how people think about money and wealth, starting with the ideas in the book Rich Dad Poor Dad.
Keep learning
- Practise it: open the interactive Make Money lessons in your learning journey.
- Previous lesson: Budgeting apps and tools.
- Next lesson: Rich Dad Poor Dad: key ideas.
- Related: Module review: money basics.
This article is educational and is not financial advice. Kofi is a character from Mondosol’s story cast. Example numbers are made up to show how the idea works.
