Tired of Budgeting Overload? Try This Simple Method

Feeling overwhelmed by budgeting advice? Tired of being told you’re doing it wrong? You’re not alone. Last week we talked about why a budget matters, now let’s focus on the “how.”

The reality is, the best budget is the one that fits your life, that you can keep up with. If you’re seeking a straightforward starting point or a fresh perspective, consider the 50/30/20 method. It’s a simple framework to allocate your income:

50% to Needs: Essential expenses like rent, utilities, and groceries.

30% to Wants: Discretionary spending on things like dining out and entertainment.

20% to Savings/Debt Repayment: Putting money towards things like your 401(k) and paying down debt. We like to think of this category as “your future self will thank you”.

Ready to explore this approach? Our short article provides a step-by-step guide to creating your own 50/30/20 budget. Plus, we’ve included a handy, downloadable template to get you started today!