Creating a Successful Budget

A budget is a financial plan that helps you track income and expenses, ensuring you live within your means and save for the future.

The 50/30/20 Budget Rule

• 50% Needs: Essential expenses like housing, utilities, food, transportation
• 30% Wants: Discretionary spending like entertainment, dining out, hobbies
• 20% Savings: Emergency fund, retirement, debt payoff, investments

Budgeting Tips

• Track every expense for at least one month
• Automate savings and bill payments
• Build an emergency fund (3-6 months of expenses)
• Review and adjust your budget monthly
• Use the envelope method for discretionary spending