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Budgeting – 50/20/30 Rule

Good money management is the key to financial stability. The first step to improve how you manage your money is to create a budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful.

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Budgeting – 50/20/30 Rule

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  1. Budgeting – 50/20/30 Rule

  2. Good money management is the key to financial stability. The first step to improve how you manage your money is to create a budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful.

  3. The 50/20/30 rule states that you should set aside a specific part of your income for different aspects of your life. • 50% - Fixed Expenses • 20% - Financial priorities • 30% - Variable expenses

  4. Fixed Expenses • Fixed Expenses are monthly expenses that you have no control over and have a commitment to pay each month. • Fixed expenses include • Rent • Food • Bills

  5. Financial Priorities • Financial priorities are things that could help you to become financially stable or independent in the future. • Financial priorities include: • Saving for Retirement • Repaying Debt • Creating an Emergency Fund

  6. Variable Expenses • Variable expenses change from month to month and are not necessary to living. • Variable Expenses include: • Eating Out • Entertainment • Hobbies

  7. Lear more about budgeting at FinLit.comThank You

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