Wednesday, February 15, 2012
Budgeting and Saving: The 50-30-20 Budget
As twenty-somethings, learning to manage your own finances is so important. I hope to one day become extremely financially educated. I'm a college grad with a small amount of debt (compared to most), childless, with a decent entry level job and would like to get into the scary world of stocks and bonds and all that; but for now I'm learning basic money skills that will help me in the long run.
I came across this concept of the 50-30-20 budget which is a simple way to break down your expenses by needs, wants and savings. In other words, 50% of monthly expenses should be your needs, 30% are your wants, and 20% is your savings. The link will help you break down everything you spend your money on and it looks really helpful! I'm definitely going to give this a try, and report on how well I did - or not!
What do you natural and fabulous young folks use to save money? Do you think this concept is helpful?