5 Simple Steps to Creating a Budget That Actually Works - Deepstash

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5 Simple Steps to Creating a Budget That Actually Works

crediful.com

Budgeting is simply balancing your expenses with your income.

It's a plan for the coordination of resources and expenditures. When you budget your money, there’s a desired outcome. And being able to track your spending should ultimately move you in the right direction towar...

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  1. Gather Some Financial Information: gather a detailed list of your income and expenses.
  2. Select a Budgeting Method: figure out how you’ll budget your money to meet your most pressing financial goals.
  3. Create Your Budget: tally...

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The 70:20:10 budgeting method

This method suggests that you allocate 70 percent of your income to expenses, 20 percent to savings, and the remaining 10 percent to debt.

70:20:10 may work for someone with a healthy emergency fund and minimal debt.

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The 50:30:20 budgeting method

Under this method, 50 percent goes to expenses, 30 percent goes to wants, and 20 percent goes to a combination of debt and savings.

A person with a healthy amount of disposable income but loads of debt could probably benefit more from the 50:30:20 method.

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The most common buckets are:

  • Expenses, or your needs: housing, food, transportation, clothing, insurance, childcare,  etc.
  • Debt - monthly debt obligations: personal loan, student loan, auto loan, and credit card payments etc.
  • Savings, including fund...

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Online Scheduling and Online Bill Payment

Scheduling your payments  (online or through your financial institution’s bill pay feature) decreases the likelihood of blowing your budget. 

Despite the fact that funds will be sitting into your account until the date they are due to be withdrawn, you’ll know the money is off limits...

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Benefits of automated savings

  • you don’t have to go through the trouble of making an additional transfer
  • it won’t be as tempting to spend money that’s sitting in a savings account that you don’t make regular transactions out of.

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