You may or may not have heard of the 50/30/20 budgeting rule, but it’s a good one – one that will help make organizing your finances a lot simpler. The basic idea is to divide up your after-tax income and allocate it to spend this way: 50 percent on your needs, 30 percent on wants and 20 percent on savings. Below are more details on how to do this.

Spend 50 percent on needs. These bills are those that are necessary for survival, such as rent/mortgage, groceries, utilities, health care, insurance and paying the minimum amount on your debts. Other things like Starbucks, Netflix and dining out might feel like needs, but if you get honest, they really aren’t. (They fall into the next category.) To get started, here’s a free worksheet. If you’re spending more than 50 percent on your needs, then look for areas to cut expenses or downsize your lifestyle. For instance, you could eat in (and make delicious coffee at home), maybe take public transportation to work or even choose a smaller home or more modest car. While these compromises might not be very fun, they’re necessary to make you fiscally healthier. Plus, they’ll pay off in the long run, which will feel really good.

Allocate 30 percent for wants. The best way to look at this category is to think of everything that is optional. It includes obvious choices like going to your favorite restaurant, joining a gym, buying that new techie gadget or a gorgeous new purse. Another way to frame wants are, for instance, choosing a more expensive entrée like lobster instead of a pasta dish, or buying a Mercedes instead of a no-nonsense Honda. That said, living a spartan life with no feel-good experiences isn’t realistic. We all have desires. But if you find you’re spending more than 30 percent on these things, a way to cut back is to plan ahead on splurging and do it less often. This way, treating yourself might feel better than it normally would.

Sock 20 percent away on savings. This category, of course, includes your savings account, as well as investment accounts like IRAs, mutual funds and stocks, which may or may not be part of your retirement. Besides saving money to pay for future bills, it’s also recommended to put away at least three months of expenses in an emergency fund, should you lose your job or have unexpected events occur. If you spend this allotment, start replenishing it as soon as you can. Other things that fall into savings are paying more on your debt instead of minimum payments because you’ll be reducing the principal and future interest you’ll owe; so in effect, you’re saving. While tucking funds away might seem impossible, once you get in the habit of it, you won’t miss it. And a few months down the road, when you take a look at the sum you’ve accumulated, you’ll most likely be super happy.

Admittedly, saving money and managing it is a challenge – you’re not alone. As of January 2022, the personal saving rate was 6.4%, down from 8.2% in December 2021. So take heart. If you’re saving anything at all, you should count that as a victory. You’ll be way ahead of the crowd. In the end, seeking a financial equilibrium and erring on the side of saving will contribute to a more abundant life in the long run.

Sources

https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp


72 Comments

Xzhqdk · March 13, 2024 at 7:44 pm

ciprofloxacin 1000mg brand – brand amoxiclav augmentin 1000mg generic

Trtcev · March 15, 2024 at 5:26 am

cheap ciprofloxacin – amoxiclav ca buy clavulanate for sale

Shjqbr · March 16, 2024 at 8:38 pm

ciprofloxacin 500mg price – trimox 500mg us
buy erythromycin generic

Ojrimi · March 18, 2024 at 1:50 am

buy metronidazole 400mg without prescription – order azithromycin pills order zithromax 250mg sale

Npvmlc · March 18, 2024 at 8:28 pm

buy ivermectin 12 mg online – buy co-amoxiclav generic buy sumycin pill

Nymvss · March 19, 2024 at 12:24 am

ivermectin 12mg for humans – cefixime medication sumycin 250mg generic

Ipoowb · March 20, 2024 at 6:54 am

buy valacyclovir paypal – zovirax 400mg cost zovirax 800mg over the counter

Sqrsni · March 21, 2024 at 8:13 am

ampicillin order online buy amoxicillin generic order amoxil sale

Sxdnlt · March 22, 2024 at 1:15 am

cheap flagyl 200mg – order terramycin 250mg sale buy azithromycin 500mg online cheap

Quyfej · March 23, 2024 at 10:56 pm

buy furosemide no prescription – order candesartan 8mg online purchase capoten generic

Cgojwj · March 24, 2024 at 9:27 pm

glycomet uk – ciprofloxacin generic buy lincocin pills

Xcuilg · March 26, 2024 at 10:47 pm

clozapine 50mg canada – quinapril 10mg generic order pepcid 40mg without prescription

Rkekwp · March 27, 2024 at 5:51 am

retrovir 300 mg generic – allopurinol 300mg drug zyloprim online order

Kxnale · March 29, 2024 at 8:41 pm

order anafranil 25mg generic – buy abilify sale buy generic sinequan

Ylndmh · March 30, 2024 at 8:54 am

buy seroquel pills – purchase quetiapine sale oral eskalith

vpn coupon code 2024 · April 1, 2024 at 12:57 am

Wow, superb blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your site is wonderful,
let alone the content!

Also visit my web blog vpn coupon code 2024

vpn special code · April 1, 2024 at 1:43 am

I do not even understand how I stopped up here, however I thought
this submit used to be great. I do not know who you
might be but definitely you are going to a famous blogger
when you aren’t already. Cheers!

Here is my page :: vpn special code

Vdfkrs · April 1, 2024 at 5:14 am

order generic hydroxyzine – amitriptyline pill order generic amitriptyline 25mg

Qaemsp · April 2, 2024 at 10:32 pm

augmentin 375mg sale – buy generic augmentin 375mg buy generic cipro for sale

vpn special coupon code 2024 · April 6, 2024 at 8:48 am

Wow, superb weblog format! How long have you been running a blog for?

you made blogging look easy. The total look of your site is wonderful, as neatly as
the content!

my web-site;

vpn coupon code 2024 · April 6, 2024 at 6:08 pm

Wow, fantastic blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your website is magnificent, let alone the content!

Here is my website: vpn coupon code 2024

vpn special · April 8, 2024 at 8:13 am

Good information. Lucky me I recently found your
website by chance (stumbleupon). I have bookmarked it for later!

Also visit my page ::

Atowvq · April 8, 2024 at 9:02 pm

buy azithromycin for sale – purchase tindamax generic buy ciplox 500mg generic

vpn special coupon · April 9, 2024 at 8:22 pm

I don’t know whether it’s just me or if perhaps everybody else encountering issues with your website.
It appears like some of the written text on your content
are running off the screen. Can someone else please provide feedback and let me know if
this is happening to them too? This may be a issue
with my internet browser because I’ve had this happen before.
Kudos

my homepage – vpn special coupon

Vetngx · April 10, 2024 at 7:42 am

order generic cleocin – chloramphenicol tablet buy chloramphenicol no prescription

Oazbzz · April 11, 2024 at 1:37 pm

stromectol tablets for humans for sale – eryc 250mg sale cost cefaclor 250mg

Layrrp · April 13, 2024 at 10:43 pm

best allergy pills – advair diskus over the counter theophylline over the counter

Urtqxm · April 14, 2024 at 1:12 pm

methylprednisolone 8 mg without a doctor prescription – cetirizine 5mg drug order astelin 10ml sprayer

Hbiivo · April 16, 2024 at 9:05 am

where can i buy clarinex – ketotifen 1mg cheap albuterol order

Nazdyc · April 16, 2024 at 11:40 pm

purchase glucophage online cheap – buy januvia pills buy acarbose pills

Heyyyv · April 18, 2024 at 6:05 am

micronase 5mg ca – glucotrol 5mg over the counter buy cheap generic forxiga

Vaturg · April 20, 2024 at 9:19 am

buy repaglinide 1mg pills – brand prandin buy jardiance sale

Dxqemm · April 21, 2024 at 3:27 pm

purchase rybelsus online cheap – desmopressin cost where to buy desmopressin without a prescription

Dgifse · April 23, 2024 at 1:20 am

buy lamisil 250mg sale – buy generic terbinafine oral grifulvin v

Uanbug · April 24, 2024 at 5:19 pm

buy famciclovir 250mg without prescription – famciclovir 500mg price buy valcivir 500mg generic

Kajizo · April 25, 2024 at 4:18 am

nizoral pill – butenafine for sale online itraconazole 100 mg usa

Goheza · April 27, 2024 at 7:01 am

generic lanoxin – lanoxin 250mg price brand lasix 100mg

Nifhmm · April 27, 2024 at 9:01 pm

lopressor 50mg tablet – buy losartan 50mg pill order nifedipine 10mg generic

Zdglhy · April 29, 2024 at 8:42 am

hydrochlorothiazide oral – order zestril 2.5mg generic pill bisoprolol

Amxjra · May 1, 2024 at 7:56 am

buy generic nitroglycerin for sale – buy combipres sale purchase valsartan online

Ygbdyd · May 1, 2024 at 1:34 pm

zocor criminal – tricor per buy lipitor without a prescription

Ksjvsi · May 4, 2024 at 12:02 am

rosuvastatin online bold – crestor pound caduet research

Ivjhok · May 5, 2024 at 8:53 pm

dapoxetine moon – aurogra our cialis with dapoxetine swear

Lvfiqc · May 6, 2024 at 5:30 am

viagra professional trust – malegra previous levitra oral jelly online white

Mhaowu · May 8, 2024 at 10:23 am

brand cialis step – zhewitra island penisole peter

Qqdgun · May 8, 2024 at 9:14 pm

cenforce weakness – zenegra online air brand viagra root

Vyapxm · May 10, 2024 at 10:37 pm

brand cialis waiter – zhewitra deliver penisole sparkler

Sdjqgs · May 12, 2024 at 7:25 am

cialis soft tabs pills stable – caverta suffer viagra oral jelly edge

Wxccbr · May 15, 2024 at 2:19 am

cialis soft tabs since – tadarise pills shell viagra oral jelly half

Iiwdlk · May 17, 2024 at 6:44 pm

dapoxetine council – suhagra launch cialis with dapoxetine curious

Jakpej · May 19, 2024 at 2:10 am

cenforce save – levitra professional online slip brand viagra online faith

Dtlnmx · May 19, 2024 at 2:25 pm

asthma treatment click – inhalers for asthma separate asthma treatment dispose

Kcrafd · May 20, 2024 at 2:41 pm

acne treatment beckon – acne treatment drive acne treatment amazement

Llskax · May 21, 2024 at 11:05 am

prostatitis treatment gang – prostatitis pills party pills for treat prostatitis capture

Hsgxci · May 22, 2024 at 10:51 am

uti medication fry – uti medication drum uti antibiotics ireland

Uikacy · May 24, 2024 at 9:20 am

valacyclovir online fierce – valtrex online scrap valtrex lord

Vgeyma · May 26, 2024 at 12:32 pm

priligy vanish – dapoxetine enough priligy those

Gnshej · May 28, 2024 at 12:12 pm

loratadine depress – claritin behind claritin spread

Gqdsii · May 29, 2024 at 10:20 pm

ascorbic acid northern – ascorbic acid northern ascorbic acid wire

nordvpn special coupon code 2024 · May 31, 2024 at 11:43 am

When some one searches for his required thing, thus he/she wants to be available
that in detail, so that thing is maintained over
here.

Feel free to visit my web-site nordvpn special coupon code 2024

Ybpiqe · May 31, 2024 at 11:50 am

promethazine nay – promethazine feast promethazine colour

Lndhct · June 1, 2024 at 12:19 am

clarithromycin crew – cytotec potion cytotec pills farther

Tpbicd · June 3, 2024 at 7:25 am

fludrocortisone pills mud – omeprazole pills glow prevacid pills madam

Mutauh · June 5, 2024 at 7:40 pm

order aciphex generic – generic metoclopramide 20mg buy motilium 10mg generic

Attvoa · June 5, 2024 at 9:12 pm

order aciphex – maxolon online domperidone 10mg without prescription

Lkqwdg · June 7, 2024 at 8:29 am

order bisacodyl 5mg for sale – oxytrol cheap liv52 canada

Qlcbga · June 8, 2024 at 7:39 pm

buy generic eukroma over the counter – duphaston 10 mg canada buy duphaston 10mg pills

Pcmsll · June 9, 2024 at 10:35 pm

purchase bactrim generic – oral tobramycin 5mg buy tobra

Gnsmyc · June 10, 2024 at 8:44 pm

purchase fulvicin online cheap – order lopid pills lopid over the counter

Liigzo · June 12, 2024 at 7:25 pm

generic dimenhydrinate 50 mg – dimenhydrinate 50 mg price risedronate 35mg canada

Nyxkkh · June 14, 2024 at 10:49 am

order enalapril for sale – purchase latanoprost purchase latanoprost without prescription

Cpjsog · June 14, 2024 at 7:19 pm

order generic monograph 600 mg – etodolac 600 mg tablet where can i buy pletal

Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *