How to create a monthly budget that works for you

Anything that gets measured gets managed. If you know how much money you are spending in a month, you have the power to take control of your life. Budgeting isn’t about restriction—it’s about financial clarity and control. It helps you balance your income, expenses, and savings while planning for both short-term needs and long-term goals.

✅  Step 1: Identify your total monthly income

A strong budget starts with understanding how much money you have available each month.

✅ Include all sources of income: Salary, freelance work, rental income, dividends, and any other earnings.
✅ If your income fluctuates, use an average of the last six months for an accurate estimate.

📌 Example: If you earn a fixed salary of MUR 30,000 and receive an additional MUR 6,000 from freelance work, your total monthly income is MUR 35,000.

💡 Pro Tip: Use your MCB online banking statements for your accounts or Juice app transaction history to get a clear picture of your income sources.

💳  Step 2: Categorise your expenses

Most people underestimate how much they spend. By tracking your expenses, you gain clarity on where your money is going. 

🔹 Fixed Expenses (50% – Needs)

These are essential monthly costs that remain consistent:
✔ Rent or mortgage payments
✔ Loan repayments (home loan, car loan, personal loan)
✔ Utility bills (electricity, water, internet)
✔ Insurance (health, car, or home insurance)
✔ Transportation (fuel, public transport, maintenance)

🔹 Nice to Haves  (30% – Wants)

These are lifestyle choices that you can adjust:
✔ Dining out and entertainment
✔ Shopping and subscriptions
✔ Travel and hobbies

🔹 Savings & Investments (20%)

This is money set aside for financial security and future goals:
✔ Emergency fund (3-6 months of expenses)
✔ Retirement savings
✔ Investments in stocks, mutual funds, or real estate

📌 Example: If your total monthly income is MUR 32,000, your expenses could be split as follows:

• MUR 18,000 for fixed expenses (needs)

• MUR 10,800 for discretionary spending (wants)

• MUR 7,20 for savings & investments

💡 Pro Tip: With MCB, you can create savings accounts for free using Juice App. Just go to Accounts > choose “Open New Account” at the top left > choose which type of account you want to create. You can also rename it to help differentiate between accounts.

We suggest creating the three following accounts with the following budget distribution to be able to bucket your spending. 

1. Fixed Expenses

2. Nice To Haves

3. Savings

💰 Step 3: Automate your budget with the 50/30/20 rule

One of the easiest ways to maintain financial discipline is to automate your budget. With the 50/30/20 rule, you can set up standing orders or auto-transfers within your MCB accounts to:

✅ Allocate 50% of income for essential expenses
✅ Assign 30% for discretionary spending
✅ Direct 20% to savings & investments

💡 How to Automate Your Budget with MCB:
🔹 Set up an MCB savings account to automatically transfer 20% of your salary each month.
🔹 Use the Juice app to schedule recurring payments for fixed expenses.

📈 Step 4: Review & adjust your budget monthly

A budget isn’t set in stone. Your financial situation and priorities change, so your budget should too.

✅ At the end of each month, review your spending patterns.
✅ Identify areas where you overspent or saved more than expected.
✅ Adjust your categories if your income changes or if new expenses arise.

Takeaways: Build a budget that works for you

By following these steps, you can create a sustainable and flexible budget that allows you to spend confidently, save efficiently, and invest wisely.

✔ Know your total monthly income
✔ Categorize expenses into needs, wants, and savings
✔ Use the 50/30/20 rule to allocate money effectively
✔ Automate payments and savings with MCB accounts and the Juice app
✔ Review and adjust your budget regularly