The 80/20 Budget
Budgeting can be a sore subject for some, but it should never have to be!
Budgeting does not have to be detailed and vigorous, and the 80/20 approach is a wonderful example of this! This budget is a straight-to-the-point approach that is easy to maintain! To begin, 20% of a your income goes directly into savings. The other 80% of income goes towards spending such as on groceries, bills and any other necessities. After paying for essentials, the remaining amount left in the 80% is allocated towards additional, nonessential spending. Because the initial 20% is already set aside, there is not as much temptation for the budgeter!
The 80/20 approach is suitable for those who have never budgeted before or those who dislike classic budgeting methods. Many people do their best to avoid any budgeting that requires the detailed keeping of financial expenses. This is understandable because tracking finances can be overwhelming and difficult! The 80/20 approach is ideal because once the original 20% is taken out, the budgeter knows that they can now spend practically however much they want, but they must be wise. After all, that sum of money must carry them into the next month! For more budgeting methods and tips, follow along with us at Kelly Community!
|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!|