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My Budget Philosophy: 50-30-20 Budget Plan

My Budget Philosophy: 50-30-20 Budget Plan

Budgeting Strategies by popular Seattle lifestyle blog, Whit Wanders: Pinterest image of a woman holding money and filling out a budgeting sheet.

Think of a budget as a plan for your money! Your budgeting strategies and budget plan shifts and evolves as your essentials, needs, and wants change over time.

 

Any budget you create you want to ensure you are living within your means and covering essentials, needs, and your everyday wants. Your budget should also reflect future planning and financial milestones you are looking to achieve.

 

→Make sure to read my 3 Savings Buckets to have to Build Your Personal Wealth! This will help you start building key savings habits for the future.

 

One of my favorite budgeting strategies that I use to budget my money and make sure I am using my income efficiently is to follow the 50-30-20 budget planning rule!

 

Budgeting Strategies: 50-30-20 Budget Plan

 

 ESSENTIALS: 50% of  Income

Essentials are bills that you absolutely must pay and are necessary for survival. 50% of your take-home should be dedicated to this bucket.

Types of Essentials:

♦ Rent /Mortgage payments

♦ Car Payments

♦ Groceries

♦ Insurance

♦ Healthcare

♦ Utilities

 


 WANTS: 30% of  Income

Wants are all the things you spend money on that are not absolutely essential. Anything in the "wants" bucket is optional

Types of Wants:

♦ Dining Out / Takeout

♦ Cable

♦ Shopping

♦ Travel/Vacations

♦ Entertainment

♦ Tech Gadgets


 NEEDS: 20% of  Income

This 20% of your income goes to your financial future, i.e paying down debt and building up your savings.

Types of Needs:

♦ Emergency Fund

♦ 401k / IRA

♦ Retirement

♦ Debt Payments

♦ Investing


 

50-30-20 Budget Plan

Now that you understand the 50-30-20 budget plan its time to do the work! Download the worksheet and start dividing your monthly income into essentials, needs, and wants to start planning your budget!

 

BUDGET TIP: As your craft your own budget plan base your budgets on your take-home income (i.e. after taxes!)

 

DOWNLOAD BUDGET PLANNER BELOW↓


 

FINANCIAL BUDGET PLANNER

Take control of your finances! Use this budgeting strategies planning worksheet to start setting your monthly and annual budgets based on the 50-30-20 budget rule!

budget planning worksheet pdf

DOWNLOAD THE FINANCIAL BUDGET WORKSHEET

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What are some of your favorite budgeting strategies?  Let me know in a comment below!

 


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