How to budget in 5 steps

Money meme of the week: The true pain with budgeting

This week: How to budget in 5 steps

If you are struggling to budget and need a place to start, try the 50/30/20 strategy.

50% fixed expenses

These are your necessities - think housing, utilities, groceries, transportation, and insurance.

These should be what you can afford to sustain without draining your bank account.

30% flexible spending

This portion of the budget is where you can enjoy nights out to eat, travel, entertainment, gifts, and more.

If you're trying to get out of debt fast, you may decide to cut your wants until you have some savings built up or debt goals taken care of.

20% financial goals

This portion of your after-tax income goes towards your financial goals, whether that's 5 years out, a decade, or more.

This can be investing, a high-yield savings account, paying off debt, or saving for retirement.

Talk soon,

Cam

PS: Check out Arnolds Pump Club. A daily email that makes it easier to live a healthier, happier life without all the confusion and stress.