Step 2: Split your income between the 3 categories Her total monthly income that she will budget based on is $4,000. For those paid bi-weekly, this will be the total of 2 paychecks.Įxample: Brittney gets paid $2,000 every 2 weeks. How To Set Up A 50 / 30 / 20 Budget Step 1: Figure out your total monthly incomeįor this budget, you need to figure out your total monthly take-home pay. Let’s walk through an example of how this would look in a monthly budget. According to the book, your 401k should be included in the 20% for savings, but since your 401k is deducted before you get your paycheck, it makes way more sense to budget on your take-home pay instead. Note : This budget is for your after-tax pay. 20% of your income goes toward Debt Payoff and Savings.30% of your income goes toward your “ Wants” (Shopping, Entertainment, Restaurants, Hobbies, Etc.).50% of your income goes toward your “ Needs” (Housing, Groceries, Utilities, Transportation, Bills, Insurance, Debt Minimum Payments, etc.).It’s a simple rule to give a general guideline on how to budget your money. The 50 / 30 / 20 Rule was first coined by Elizabeth Warren and her daughter in her book All Your Worth: The Ultimate Lifetime Money Plan. What Budget Apps Work With The 50 / 30 / 20 Rule?.How Do You Pay Off Debt With A 50 / 20 / 30 Budget?.Step 3: Adjust Your ACTUAL Spending To Fit.Step 2: Split your income between the 3 categories. Step 1: Figure out your total monthly income. The good news is that most of these monthly budget templates are free, and even the paid apps usually offer free trials. Sometimes it takes a little trial and error to find the best fit. Just pick one and give it a go! If it doesn’t work for you, you can always change things up later. So, which budget template is the best? As always, the best budgeting tool is the one you’ll use consistently. If you’re looking for something a little more substantial, though, one of the budget templates from the list above is bound to fit the bill. While it might not look pretty or do anything fancy, it gets the job done. In fact, our family still uses a good old-fashioned pen and paper.
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