How the 50-30-20 budget works

RICHMOND, Va. (WWBT) -- Your spending has probably changed drastically. If you still have an income-- you may be spending more on groceries and less on entertainment.

Personal Finance Expert Kim Palmer with the financial website NerdWallet says it may be time to employ the 50-30-20 budget.

50% goes to needs-- rent, mortgage and food. 30% to WANTS-- like take out and entertainment. and 20% to savings. “So, if you think about your budget that way. A lot us have naturally cut back on the wants spending because we can’t do things like go to movies or go to restaurants. And so we can shift some of that spending like we were previously doing to put more towards savings,” says Palmer.

Shift as much money over to savings as you can. Are you not spending as much on gas-- move some of that money to savings.

Things like that will help you boost your emergency fund-- just in case you do lose your job or your hours are cut back as the pandemic continues.

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