![]() ![]() In line with the 50/30/20 rule, you should put aside 50% of your income (after tax) for your needs. Ultimately, ‘needs’ can be classed as outgoings that you cannot avoid, or things that you’d struggle to live without. You’ll just need to figure out which of your outgoings are classed as ‘needs’ and ‘wants’, and decide where you want to put your savings. It means you should hopefully be able to keep track of what you’re spending, and stick to your budget. One major benefit of the 50/30/20 rule is that your outgoings can be grouped into three simple categories. You can get personalized budget assistance and help with more complicated things, like negotiating with your creditors or finding out which financial assistance programs you qualify for.How to use the 50/30/20 rule to budget your money Seek help: The National Foundation for Credit Counseling is a reputable nonprofit organization that offers financial planning help.This doesn’t mean you deprive yourself of these things forever it just normalizes not spending as much money on them and finding cheaper alternatives. Do a no-spend challenge: Try to eliminate spending for a month (or several) on a problem area in your budget, such as clothing or entertainment.You can ask a lender for a modified payment plan or refinance your debt into more manageable payments. Negotiate with creditors: If debt payments are pushing you into the red, reach out to your creditors.But going through your bank statements to see what you really spend can help you find areas you can work on. Review your spending: It’s easy to guesstimate your spending with the calculator above. ![]() Find ways to boost your income: Whether it’s working a side hustle or a part-time job or asking for a raise at your current job, finding a way to boost the income side of the equation can have the biggest impact of all.Other: This is for all other expenses that don’t quite fit in any of the categories above. ![]()
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