50/30/20 Budget
By Quilter
@fatragu (677)
United States
June 24, 2023 12:42am CST
If you haven't heard of the 50/30/20 budget or you have never had it explained, here is how it works.
You get paid and then your money gets divided in the following ways.
50% of your check gets put aside for Needs.
Needs like Housing, food utilities, healthcare, and insurance.
30% of your check gets put aside for Wants
Wants like Personal care, entertainment, hobbies, and subscriptions.
20% of your check gets put aside for Savings
Savings categories like Emergency funds, savings, and 401k, investments
I had only heard about this recently.
This isn't the method that I follow but it is a good option for others.
5 people like this
4 responses
@fatragu (677)
• United States
1 Jul
I understand. I'm still digging out of a hole so I have nothing going to an overall savings but am still saving something. Most of my income goes to bills as well. I am trying to save $500 per month for car repairs but haven't managed it yet. Last month I had to pay the sales tax and put plates on and that was $600. Plus the 4 new tires, 2 rims, and an alignment that had to get done to my new car.
1 person likes this
@fatragu (677)
• United States
1 Jul
That is awesome. I know in my state everyone's property values and property taxes went up. My mom says her new value is $92k but she said she'd be lucky to get $50k based on the repairs needed. Too bad they don't count those in with property values.
1 person likes this
@fatragu (677)
• United States
1 Jul
It is just one of the many ways to do a budget. Many of us were not taught anything when it came to budgeting so I am just putting the information out there.
I was taught to just spend and everything will work out in the ends. Also, if you have checks in your checkbook you have money and you can keep writing even if you go in the red. That's what overdraft is for. I now prefer not to keep checks at home just to prevent that from happening.
1 person likes this
