[Financial Wellness 30-Day Series] Day 1: The 50/30/20 Budgeting Rule Explained 💰 | By @elijah247

Here Comes Day 1 of My 30-Day Financial Wellness Series.

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Initially I had the thought of posting daily like a diary game, talking about my day and everything I did.
But I didn't do that because,I keep on doing the same thing almost everyday and there's nothing interesting about that,so I have to come up with something that'll be interesting and get my commitment everyday for a betterlife.

I am committed to sharing daily advice to assist us to get smarter about our money management and to learn how to live cheaply without feeling miserable, and build toward our own financial better-lives!
Day one kicks off with what many perceive as a "Dirty Word":Budgeting….

For too long, in my past life, I associated Budgeting with Not being allowed to have ANY fun… It was equated to Deprivation….

And then i discovered the 50/30/20 Rule, it gave me a fresh outlook and totally changed how i viewed my money… It’s simple and works wonders without killing all your joy!!

Here’s exactly how it breaks down. What Is The 50/30/20 Rule…
What It Is:
Simply put, this budgeting method separates your post-tax income into three different categories:

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50% toward Needs
Half of your money goes towards the essentials that you need to live your life:
– Rent / Mortgage
– Electricity, Gas, Water bills
– Grocery basics – Basic utilities for working (car payment, gas to commute to work) – Medical basics (necesssary prescriptions for you/your children etc.)

… If more than half of your salary goes to needs, then you likely need to evaluate things like where you are living(rent in a lower-cost apartment maybe?) or need a side-job.

This portion is the FUN stuff!! It is the stuff that makes you happy, but if you didn’t purchase it, your life wouldn’t be directly impacted!

You must have this part of budget to avoid a melt down!:)
– Eating out (Restaurants, coffee shops)
– Buying any fun gadgets(videogames!) –Subscriptions for movies and games(Netflix)
– New clothes and accessories
–weekend trips(they aren’t that expensive when split 3 ways! Hehe)

This last portion is what works to build your “Better-life” it basically is paying the future you….
– Saving for Retirement or an Emergency Fund
– Paying down debts, like your credit card or a car loan
– Investing (stocks, bonds, buying STEEM etc!)

For quick example, say your after-tax income for the month is $1,000...
– $500 to be allocated toward Rent, Utilities, and Groceries.
– $300 for you to use on eating out, movies, new clothes.
– $200 towards Savings and any loans.

The ‘Betterlife’ Application…. Start Today.. I promise that your “budget” does not need to involve creating fancy spreadsheets with complicated numbers.
Today, as your take-away, grab a sheet of paper and a pen!

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Jot down your monthly earnings then, pull out a calculator to multiply by 0.5, 0.3 and 0.2 You should then review last month’s spending against these figures.
Did you perhaps spend more on Wants than on Savings?

Do remember there is No one size fits all, nor are you expected to succeed magically in a few days!
Today is only about understanding exactly how and where your money is going.

🗣️ I want to hear from you!
Tell me in comments, Have you previously attempted using a budget…(what was your result?)
What area(s) of your expenses is(are)the most difficult for you to keep in check?
(Mine usually boils down to take out food!)

Thank you for taking the time to read ‘Day One’! Make sure you give me a follow, so you don’t miss our discussion on Day two where we cover tracking your spending day to day, without feeling completely insane!!!.
Until then!!