How to Budget
Why it matters
- In today’s age of inflation, budgeting can help you plan your expenditures, so you know where every dollar is going.
- Budgeting may help you get out of debt.
- If a budget didn’t work for you in the past, there’s likely another strategy to try that may fit with your lifestyle.
A solid budget can help you feel more in control of your finances by getting a clear picture of your income, spending, savings, and debt.
With so many options, there’s likely a method for budgeting that works for you. For those who love all the details, a zero-sum budget has you track every expense. The 50/30/20 budget requires a bit less tracking, instead focusing on three major buckets, where 50% of your income goes to needs, 30% to wants, and 20% to debt or savings. The envelope budget involves filling envelopes with cash for each category of your budget. When your envelope is empty, you’re done spending in that category for the month. For those who love simplicity, the pay-yourself-first strategy requires you to automate your savings. Set up your bank account to automatically send money to accounts for saving when you get paid. That way, you only see the money in your account that is yours to spend!
Check out our infographic below for more information on budgeting.
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