50/30/20 Budget Made Simple

What is the 50/30/20 Rule?

The 50/30/20 budget is a way to allocate your after-tax income, it uses 3 principles to do this.

Is the 50/30/20 Rule For Me?

If you’re new to budgeting and want a simple way to organize your money the 50/30/20 budget can be a great way to start.

50% to Needs

Needs are what they say on the tin they are what you absolutely cannot live without. On your needs budget you might find the following: - Rent  - Utility Bills - Essential Travel Costs - Insurance

30% To Wants

Wants are like needs but if you had to ask yourself to be without to survive your could. These include things like:-  - Meals out - Gym - New Clothes

20% to Savings

The financial goals section covers 2 main areas: – Any saving goals you have – Debt repayment (not the minimum amounts but additional payments to save you money in the long term on hefty interest)

50/30/20 Calculator

You can get access to a free calculator to work out your 50/30/20 budget by using the link below

Who is the 50/30/20 budget good for?

If you are just getting started with your finance journey, then the 50/30/20 budget could be a good way to ease into budgeting.

Read the full article

MeMoreMoney

Other stories

Is Motley Fool Worth it?

how to buy dogecoin

Should I Invest in Dogecoin