budgeting – 50/20/30 rule

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Budgeting – 50/20/30 Rule

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Good money management is the key to financial stability. The first step to improve how you manage your money is to create a budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful. - PowerPoint PPT Presentation

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Page 1: Budgeting – 50/20/30 Rule

Budgeting – 50/20/30 Rule

Page 2: Budgeting – 50/20/30 Rule

Good money management is the key to financial stability. The first step to improve how you manage your money is to create a

budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful.

Page 3: Budgeting – 50/20/30 Rule

The 50/20/30 rule states that you should set aside a specific part of your income for different aspects of your life.

• 50% - Fixed Expenses• 20% - Financial priorities• 30% - Variable expenses

Page 4: Budgeting – 50/20/30 Rule

Fixed Expenses• Fixed Expenses are monthly

expenses that you have no control over and have a commitment to pay each month.

• Fixed expenses include• Rent• Food • Bills

Page 5: Budgeting – 50/20/30 Rule

Financial Priorities

• Financial priorities are things that could help you to become financially stable or independent in the future.

• Financial priorities include:• Saving for Retirement• Repaying Debt• Creating an Emergency Fund

Page 6: Budgeting – 50/20/30 Rule

Variable Expenses

• Variable expenses change from month to month and are not necessary to living.

• Variable Expenses include:• Eating Out• Entertainment• Hobbies

Page 7: Budgeting – 50/20/30 Rule

Lear more about budgeting at FinLit.com

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