Creating a Budget

Creating a budget can be very overwhelming – especially when you’ve just moved and you don’t know what your expenses will be. I’ve definitely been there. When I arrived in Spain in 2015, I came with $2000 as my starter budget, but without a plan in place, I blew through over half of it before receiving my first paycheck. If I could do it again, what would I do differently? This is what I recommend for incoming auxiliares de conversacion.

I would begin by creating a budget using the 50/20/30 Rule. Here’s how it breaks down:

• 50% of your income goes to cover your NEEDS – Things like rent, food, electricity, transportation, internet, etc. These are the absolute basics you will pay for every month.
• 20% of your income goes to SAVINGS – You may need to buy a plane ticket at the end of the year. Or, if you’re staying in Spain over the summer, you’ll need a summer fund for when other opportunities dry up.
• 30% of your income can go to WANTS – things that you could do without in a pinch, but make life more enjoyable: eating out, drinks, travel, new clothes, etc. These things are likely the reason you are here.

Creating a Budget with the Auxiliar Income

So how would it look for an auxiliar creating a budget based on this plan?

• If you’re earning 1000 euros a month (Madrid, Valencia), 500 euros should be earmarked for NEEDS, 200 euros for SAVINGS and 300 euros for WANTS.
• If you’re earning 700 euros a month (everywhere else), 350 euros should be earmarked for NEEDS, 140 euros for SAVINGS, and 210 euros for WANTS.

These percentages may vary slightly, especially if you live in a really high cost housing area. If that is the case, is there a variable expense you can lower, like spending less on food? You might also decide to move 10 euros a month from WANTS into SAVINGS, giving you 150 for Savings and 200 for wants.




Or, perhaps you are able to get your NEEDS lower than 50%. Then you can kick over the extra into any category you want, allowing for more savings or more traveling.

My Auxilar Budget

Let’s take a look at my plan for this year. I have just moved to a new city (Caceres), and I don’t know 100% what my expenses will be. But I can guess, based on my previous expenses.

I know my rent will be 180 euros. That’s 45 euros less than I paid last year!

For food, I’m budgeting 75 a month. Last year I got down to 65 a month, but I wanted to leave a little wiggle room while I learn my new city.

My cell phone and internet costs will not change.

My gastos (utilities) are an estimate based on last year. I paid about 20-25 euros a month for gas and electricity. This year, I have gas separate (bombona), so my estimate will be the same as last year, but split into two categories.

Since the approximate cost of gas is 16 euros per bombona, I will leave 15 euros in gastos – a high estimate – and put 8 for gas (shared expense with one person). As I start to get my electric bills and see how long a bombona lasts, I will have to adjust this.

Final Thoughts

If you follow this plan, without having any extra income, you will have at least 1800 euros saved by the end of the year for Madrid (200 a month X 9 months), 1200 euros saved in Valencia (200 X 6 months), and 1120 euros saved everywhere else (140 X 8 months).



Another thing to keep in mind is that, if you have extra income, either from private classes or an online job, you can increase your SAVINGS and your WANTS. I don’t recommend locking yourself into higher expenses for your NEEDS when your income increases, but the other two can be variable.

The important thing to remember about creating a budget with the 50/20/30 rule is that you can adjust it every month as you learn your expenses. You might be estimating higher in a category than you really need. Next month, you can lower it and use it elsewhere.

What are your thoughts about this plan? Do you have any additional strategies? Let us know in the comments below!