![]() ![]() Luckily, you can use resources like the calculator below to figure out how much green goes in each of your buckets. Ultimately, you need to decide what type of budgeting system is right for you based on your habits and circumstances. For example, when you've paid off your student loans, you can allocate more of your monthly budget for savings. You may be able to meet those numbers in the future. If you try the 50/30/20 budget method and don't hit the percentages exactly, be kind to yourself. Or you might find the lack of detail makes it harder for you to improve your spending habits. You might find it easier to track the three categories rather than categorizing each individual expense. The categories also may or may not work for you. So, you may need to adjust the percentages to fit your situation. For example, if you live in a high-cost area, you may have to put a large part of your income toward housing, making it difficult to keep your needs under 50%. Depending on your income and where you live, earmarking 50% of your income for your needs may not be enough. You’ll probably be hosting a personal finance podcast before we know it.The 50/30/20 rule can be a good budgeting method for some, but it may not work for your unique monthly expenses. Look at you-on your way to achieving your financial goals. Then take the total cost of each irregular expense category divided by 12, and voila! Suddenly your non-monthly expenses are as steady and predictable as the rest of your monthly bills when it comes to budgeting. Once you’ve created your list, make sure those non-monthly expense items are included in your budget categories.
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