Made a New Year’s resolution to save money or budget better, but you’re unsure where to start? Consider using the 50/30/20 rule when budgeting. It breaks down like this:
- 50% of your paycheck should go towards your needs, expenses that you cannot live without. This includes utility bills, groceries, your rent or mortgage, and the minimum payments on your loans and credit cards.
- 30% of the budget can be dedicated to things you want. A streaming service subscriptions, restaurant meals; things that you enjoy spending your money on.
- The remaining 20% should be put away in savings towards the future, including an emergency fund, retirement accounts, or paying down any debts you currently have.
