The easiest way to start taking control of your money is with a budget. But, in a recent article, it was revealed that only 41% Americans use one. That’s right…only 2 in every 5 people have a written plan for their money. No wonder so many people are struggling!
That Doesn’t Have to Be You
While millions of people are left wondering where all their money went, you don’t have to be one of them. Building a budget is easy and there are several tools out there that can help make it even easier.
Where to Start
Whether you use one of the many budgeting tools out there, a simple Excel sheet, or good ‘ol fashioned paper and pencil, here are a couple simple starting points:
The 10/50/20/20 Rule – The idea behind this budget breakdown is to put 10% of your income toward giving, 50% toward needs like (mortgage/rent, bills, food and utilities), 20% toward wants (like eating out, fashion, and fun) and 20% toward savings and retirement.
Percentage Guidelines – For a slightly more defined breakdown of how to budget your income, try this:
- Giving: 10-15%
- Saving: 10-15%
- Housing: 25–35%
- Utilities: 5–10%
- Food: 10–15%
- Transportation: 5–15%
- Health: 5–10%
- Insurance: 10–25%
- Personal: 5-15%
- Recreation: 5-10%
Get Started Today
Some people like a lot of detail to their budget. Others like to keep it simple. But, whether you nerd out or keep it chill, the key is to have a budget and actually use it. If you have a plan with what to do with your money before it ever gets in your hands, you’ll never have to wonder where your money went again.
