Creating a budget can feel overwhelming and boring.
So, we created the 50/30/20 Budget.
Take 50% of your total net income which includes any form of income, for example; wages, commissions, investments, social security, trusts, stocks or any other form of income and money you receive. The 50% taken is from Net Income i.e., after tax money. This 50% should be used for your NEEDS such as rent or mortgage, food, car, gas, electricity, student loans, co-pays, clothes and anything else that is NEEDED IN ORDER TO LIVE.
Next, take 30% of all your net income and use to cover your WANTS, for example vacations, jewelry, restaurant food, fancy clothes, electronics, Starbucks and all other expenses that you would like, but that are NOT NEEDED TO LIVE.
Finally, the remaining 20% of all income should be put away for SAVINGS. There is nothing like having money for a “rainy day.” Try to save as much as possible and aim for 20% of all your next income.
