The 50/30/20 Budget
To finish off our budgeting series, we will be looking at the 50/30/20 budget!
This approach to budgeting is yet another great way to add structure to monthly spending and saving! To follow this budget, 50% of income goes towards needs, 30% goes towards wants, and the final 20% goes towards savings.
As discussed by many experts, budgets should be used to help your financial situation, never making it worse! With that being said, it is okay to adjust the percentages going towards each category to customize your budget to your current situation. For example, if the cost of living has recently gone up, one may need to take 10% of income from their “wants” and allocate that towards their “needs.” It is entirely acceptable to change parts of your budget, but it is recommended to stay firm on the portion you are committing to savings! As much as your income allows, saving money is wise to prioritize before pouring extra money into the wants category.
Look on the long-term side of things and stay strong-willed on budgeting!
|Brylee Bergbower is a student at the University of Texas at Tyler studying Kinesiology who is taking on the world, learning about financial matters, and writing about it for Kelly Community. In her spare time Brylee juggles two part-time jobs, spends time with family and friends, stays fit, and studies!|