3/11/2023 0 Comments Dave ramsey budget planning![]() If you can comfortably cover things like food, rent, insurance and other necessary expenses each month with just half of your income, this is a great starter budget to get you on the path to reaching your financial goals. Here’s how it works: Divide your after-tax income into three categories: 50% for monthly needs, 30% on wants and 20% into savings. This approach is great for people who have enough income to cover their necessary expenses and want to increase their savings while limiting discretionary spending. If your eyes are already starting to glaze over, you may want to consider a budgeting plan that is pretty simple and straightforward, like the 50-30-20 budget. There are a lot of approaches you can take to creating a monthly budget, but here are three that are pretty simple to implement and don’t require fancy software or even apps to get started: Step 3: Choose a budget that fits your needs If you earn a regular paycheck, this is pretty straightforward, but you’ll still want to include things like investment income, alimony or child support and any money you earn on the side. You’ll want to include your groceries, dry cleaning, morning coffee, lunches, drinks and dinner out - if you spend it, it gets included, so don’t forget things like your property taxes, holiday and birthday presents and vacations. ![]() Putting your monthly bills into a spreadsheet, an app, or writing them down on a piece of paper can help you better understand just where your money is going and where you might be able to cut back.Īnd don’t just put down your rent or mortgage, utilities, car payment and the like. While most people have a pretty good handle on how much money they’re bringing in each month, fewer of us are as clear on just how much we’re spending. The first step in establishing a monthly budget is to understand your income and your outgo. ![]()
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