If you’re struggling with finances, adopting a simple budgeting plan might be the answer for you. Yahoo Finance explains how a simple 50-30-20 Budget Rule can get you back on track.
You start by determining your monthly net income and then allocate its use following the 50-30-30 rule:
50 percent – Needs
30 percent – Wants
20 percent – Savings & Debt
Needs include things like housing, utilities, groceries, transportation, childcare, and minimum debt payments. In Wants, you’ll find travel, entertainment, dining out, furnishings, and memberships.
Savings & Debt includes funds for personal loan payments, credit card debt, savings, and emergency funds. Of course, this rule may not work for everyone. But, it’s simple, easy to use, and allows for some flexibility. If you have payroll deductions for insurance and retirement contributions, you can include that in the 20 percent for Savings & Debt.
Say you bring home $6,000 a month. Then you allocate $3,000 for needs, $1,800 for wants, and $1,200 for savings and debt. You may find it works well for you. Go ahead, check your current spending, and see how close you might already be to the 50-30-30 Rule.
Retirement Should Be Fulfilling
Additional retirement income helps seniors keep a budget on track. Here at Council of Seniors, we’re determined to get Congress to pass The SAVE Benefits Act. The annual Social Security cost-of-living adjustment (COLA) has shortchanged seniors in recent years, and the amount of $581 was withheld from seniors. It’s time for that money to be returned.
Signing our petition is the first step in helping. Your participation in our effort can make a real difference in returning this money to seniors.
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