Learn how to structure your paychecks around paying yourself first. You might have heard people say "you should always try and pay yourself first". The phrase "pay yourself first" generally refers to the idea that when you receive income, you should prioritize saving money for yourself before paying bills or other expenses. So, let’s walk through how …
Breaking down savings goals into smaller pieces is a very powerful saving strategy for any type of planned expenses. What are planned expenses? Planned expenses are any type of expenses that are predictable and occur on a repeating basis. They can be as frequent as daily, like buying lunch, or yearly, like car registration. Because you know that …
Savings are like a guardrail for your financial plans – they ensure that even if something unexpected happens, your plan remains in place and you are still building a better financial future. Emergency fund If you are following the 50/30/20 rule for budgeting, you are already setting aside 20% of your income for savings. Now, let’s break …
How do I lower my expenses? Why and how should I save money? Saving money can be hard, but it’s one of the most important things you can do to ensure your financial stability. One of the first things you need to do when trying to save money is to understand the difference between planned …
Learn the reasons and strategies for saving money. Saving money is very important for a number of reasons. First, it allows you to have a safety net in case of emergencies. For example, if you suddenly lose your job or have an unexpected medical bill, having money saved up can help you avoid falling into …
Negotiating bills Sometimes it can be tough paying bills, especially when they’re for services you rely on, like your phone, internet, or cable. But there’s good news: you may be able to negotiate a lower bill with your service providers. Here are a few tips to help you! 1. Know your options. Before you call …
If you find any of your budgets (needs, wants, or savings) having a negative balance, do not panic. There are many different strategies that can help bring your budget from a negative to a positive. Part of the Budgeting series: How do I balance a budget? Having a negative balance in your budget means that …
Part of the Budgeting series: The 50/30/20 rule divides your money into three categories: needs, wants, and savings. The 50/30/20 rule suggests that you spend 50% of your income on your needs, 30% on your wants, and 20% on your savings. This way, you can balance your money and plan for your future. How do …
The "50/30/20 rule" for budgeting means allocating 50% of your after-tax income towards "needs" (like housing, food, utilities), 30% towards "wants" (entertainment, dining out), and 20% towards "savings" (retirement funds, emergency fund) every month. Breakdown: Key points about the 50/30/20 rule:
Part two of the budgeting track. Part one is here. Your budget needs to be something that you can look at and refer to frequently. There are multiple ways of building a budget, and you should pick the one you are most comfortable using: