Budgeting is not as complicated as it seems. It is the method or a strategy that helps you in reaching your financial goals by following the right path. You can confidently prevent overspending and build up your savings over time with a clear picture of your budget, all without manually logging every single transaction.
Having a clear guideline or plan for how to distribute your spending will help you stay under your budget and save for things like a new car, a down payment on a house, or a family vacation.
If you feel you are lacking somewhere or getting some problems in front of you in creating the best budget for you then you can try the 50/30/20 budget rule.
The 50/30/20 budget rule is a simple approach to achieving financial objectives. It assists you in easily, and sustainably managing your money. According to the 50/30/20 budget rule divide your monthly income into three spending categories: 50% for necessities, 30% for wants, and 20% for savings or debt repayment and live a stress-free life. This budget enables you to budget for every dollar you earn and construct a budget based on your total net income.
Spend 50% of your money on your needs
Needs are expenses that you can't avoid; simply allocate 50% of your income to needs and necessities; without them, you won't be able to survive. It includes monthly rent, electricity bills, household groceries, insurance, and transportation.
Spend 30% of your money on wants
Wants are defined as non-essential expenses or items that you choose to spend your money on despite the fact that you could live without them if you already had them. It includes dining out, shopping, vacation, movies, etc.
Save 20% of your money for future
The remaining 20% can now be used to save for retirement or other long-term goals. Putting aside 20% of your earnings on a monthly basis can help you construct a better, more long-term saving plan.
Try this budget rule once to better manage your money and household expenses. This can assist you in avoiding expenditures and living a happy, stress-free life. If you need assistance setting a budget, you can use GuardianWealth, the best budget planner app.
As the years progressed, you might have noticed different weddings and wedding subjects of assorted types; different colors, styles, individuals, dresses, cakes and music.
It is just fit to impart a percentage of the wedding arranging tips and traps that have gotten on along the way.
At the point when the preparations starts and you begin sorting out your big day, it is imperative to verify that you have a strong monetary planning set up.
When planning budget different couple wants different arrangements, some gives more priority to one aspect and less to another, following is the estimated percentage of the budget you should spend on the wedding, according to a study:
8- 10% on entertainment/ music
10- 12% on photographer/ video
Are you looking for a Smart Budget Planner that helps you in your savings and expenses?
Then read our blog, we have mentioned why budget planning is important in one’s life and how you can get benefit from it.
And budgeting apps like, GuardianWealth will assist you in developing long-term spending and saving patterns.
Do you know a budget planner will also help you see how much money you make from each source of income?
It also keeps track of money that arrives at odd times or in less than a month's time, such as weekly or fortnightly.
