New to budgeting? Follow the 50-30-20 rule to get started.✨
1. 50% for Needs: This portion of your income should go towards essential expenses that are necessary for your basic living. These include things like housing (rent or mortgage payments), utilities, groceries, transportation (car payments, gas, public transit), insurance premiums.✨
2. 30% for Wants: This category is for the things you desire but aren’t necessary for survival. This can include dining out, entertainment, hobbies, travel, clothing, and streaming services.✨
3. 20% for Savings and Debt Repayment: This portion of your income should be dedicated to building financial security for the future. It includes contributions to savings accounts, retirement funds, emergency funds, child’s education, credit card debt and paying down any other debt beyond the minimum required payments. By prioritizing savings and debt repayment, you’re investing in your long-term financial stability and reducing the burden of debt over time.✨
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