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How to Budget Using a Simple and Flexible Strategy

Create the perfect budget

Create the perfect budget

Budgeting allows you to identify wasteful expenditures, adapt quickly as your financial situation changes, and achieve your financial goals. Creating a budget will decrease your stress levels and help you prioritize your spending and manage your money—no matter how much or how little you have. Personal finance writer Laura Shin has a simple and flexible strategy of budgeting that uses the 50/20/30 guideline.

  1. “Tally your necessary expenses, aiming to keep them under 50% of your take-home pay.”
  2. “Aim to allocate 20% or more of your take-home pay to your financial priorities.”
  3. “From the remaining 30% or less of your budget, set yourself a weekly allowance.”

(forbes.com)

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