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50/30/20 Easy budget worksheet
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What is the 50/30/20 Budget?
Show of hands: who loves keeping a budget? If you are one of those lucky few who takes to budgeting like a duck in water, my hat is off to you. For everyone else, have no fear: there are other options. One simple strategy that works well in place of a traditional budget is a “50/30/20” Budget.

 

The 50/30/20 approach to cash flow designates 50% of all income to basic, essential expenses (the “must haves” like housing, utilities, groceries, and basic care); 30% to discretionary expenses (the “nice to have” items); and 20% to saving & investing.

Why not use a traditional budget?

We're all smart, competent people here, right? We should be able to maintain a spending plan and stick to it through determination and will power – right? Maybe not so much. If you've ever tried sticking to a diet or fitness routine while keeping your absolute favorite snacks in the house, you might understand how hard it is to rely on will power alone. Making a budget is one thing; sticking to it is something else entirely.

 

Consider two scenarios: First, let's say I'm going to give you $100 to spend however you want, with the caveat that I also want you to use some money for your bills and save some of it. Now let's assume that I just hand you $30 and say, "I already put $50 towards your phone bill and $20 into your savings account." In which scenario are you most likely to spend & save appropriately?

 

That is the 50/30/20 Budget. You can get yours now using this form:

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