A simple budget that works
You don't need to track every dollar. Plan a few numbers once a month.
3 min read
A budget is a plan for your money. You decide where your paycheck goes before you spend it.
You don't need to track every dollar. Most budgets fail because they are too detailed. You only need 3 things:
- Your fixed bills each month: rent, utilities, insurance and loan payments.
- Your saving and investing goals.
- 4 to 6 spending areas that change each month, like groceries, eating out, shopping and transportation.
A starting point: 50/30/20
- 50% NeedsRent, food, utilities, insurance and minimum loan payments.
- 30% WantsEating out, shopping, trips and hobbies.
- 20% Saving and paying down debtEmergency fund, retirement, and extra debt payments.
These numbers are a guide, not a rule. Your income, your city and your family may change them. What matters is that you choose where the money goes.
Check it once a month
Look at your budget once a month, not every day. You are looking for patterns, not mistakes. Maybe you spent more on restaurants than you planned. Maybe you have extra money for savings.
Small changes every month matter more than a perfect plan.
Try the Budget tool