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budgeting & beyond

the 50/30/20 rule of budgeting

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Once you really start to look at the spending categories within your budget and break them down in a way that makes sense for you… everything else falls into place. In this video we’ll be discussing the “50/30/20 rule for budgeting” to help you create the best budget for you and your financial goals.

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Calculate your 50/30/20 budget with this calculator from nerdwallet.

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The act of “budgeting” can feel scary & overwhelming. Taking a look at your finances and realizing you spent WAY too much on coffee last month is never fun. 

 

But there’s something here to help with all of the overwhelm — and should help you spend less on things that quickly eat up your hard-earned cash. 

 

And that’s the 50/30/20 rule of budgeting.

 

Wtf is that?

 

Well, the 50/20/30 rule is a commonly used budgeting plan that’ll help you map out where your after-tax income should go. It’s one of the best ways to plan your budget (especially if you don’t know where to start).

 

  • The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do. Think: your rent payment, your cell phone bill, any medication you need, etc.
  • Then you should allocate 30% to the things you want. Ya know, the things that make life FUN. Think: going out to dinner, concert tickets, that new merch your favorite YouTuber just dropped, etc.
  • The remaining 20% should be put toward your savings, investments & any debt pay off. Think: student loans, any credit card debt OR put a chunk of this money into your savings, retirement or investment account.

 

Yeah, it can seem a little annoying to break down and focus on your money so much, but it’s one of the best ways to guarantee you’ll have less stress in your financial future. Sounds pretty nice, huh?

No account yet? Register

budgeting & beyond

the 50/30/20 rule of budgeting

Once you really start to look at the spending categories within your budget and break them down in a way that makes sense for you… everything else falls into place. In this video we’ll be discussing the “50/30/20 rule for budgeting” to help you create the best budget for you and your financial goals.

The act of “budgeting” can feel scary & overwhelming. Taking a look at your finances and realizing you spent WAY too much on coffee last month is never fun. 

 

But there’s something here to help with all of the overwhelm — and should help you spend less on things that quickly eat up your hard-earned cash. 

 

And that’s the 50/30/20 rule of budgeting.

 

Wtf is that?

 

Well, the 50/20/30 rule is a commonly used budgeting plan that’ll help you map out where your after-tax income should go. It’s one of the best ways to plan your budget (especially if you don’t know where to start).

 

  • The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do. Think: your rent payment, your cell phone bill, any medication you need, etc.
  • Then you should allocate 30% to the things you want. Ya know, the things that make life FUN. Think: going out to dinner, concert tickets, that new merch your favorite YouTuber just dropped, etc.
  • The remaining 20% should be put toward your savings, investments & any debt pay off. Think: student loans, any credit card debt OR put a chunk of this money into your savings, retirement or investment account.

 

Yeah, it can seem a little annoying to break down and focus on your money so much, but it’s one of the best ways to guarantee you’ll have less stress in your financial future. Sounds pretty nice, huh?

Calculate your 50/30/20 budget with this calculator from nerdwallet.

lessons in this course

Share on facebook
Share on twitter
Share on linkedin
Share on email

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oh, and you can win free stuff just by signing up & referring friends!

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