RICHMOND, Va. (WWBT) - New Year, new money situation! It’s time for a little budgeting 101.
Your budget doesn’t have to be in a fancy spreadsheet with graphs and charts. A simple, hand-written list of expenses can get you started.
Start by writing down all of your expenses for a month. Everything so you get a good picture of where your money goes.
Then, create a budget that leaves room for needs and wants. That’s called the 50/30/20 budget:
- 50% of your take-home pay covers needs like housing and groceries
- 30% covers wants like dining and travel
- 20% covers savings and debt repayment
That way, you don’t stress and you’ve built a budget that allows for fun.
Also, don’t forget to funnel some extra cash into savings and investments.
Paying yourself is vital, so is paying for your future.
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