Budgeting = creating a plan to spend your money - Deepstash

Bite‑sized knowledge

to upgrade

your career

Ideas from books, articles & podcasts.

Budgeting = creating a plan to spend your money

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 towards meeting your financial goals.

33

STASHED IN:

1.83K

MORE IDEAS FROM THE SAME ARTICLE

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.

  • 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.

  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...

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Despite the fact that funds will be sitting into your account until the date they are due to be withdrawn, you’ll know the money is off limits...

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.

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...

Discover and save more ideas by creating a

FREE

Deepstash account.

Develop a

reading habit

, save

time

and create an amazing

knowledge library

.

GET THE APP:

MORE LIKE THIS

No matter how little or how much money you earn, creating a monthly budget is one of the most important aspects of managing your finances. What gets measured gets managed.

Having a budget doesn't stop you from spending money the way you want it to, but works like a partne...

25

STASHED IN:

1.61K

What is 50/20/30?

  • The 50-20-30 (or 50-30-20) budget rule is an intuitive and simple plan to help people reach their financial goals.
  • The rule is a template that is intended to help individuals manage their money and save for emergencies and retirement.

40

STASHED IN:

166

Definition of a budget

A budget is an estimation of income and expenses over a set time. It is usually drawn up and re-evaluated periodically.

Budgets can be made for a person, a group, a business, a government, or anything else that makes and spends money.

3

STASHED IN:

127