50 20 30 Budget – Easy Method to Make Budget Plan

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By be4net

Planning how you use the money could be difficult to do for some people. It is too complicated. Creating a budget plan is something that professionals do. Those are the standard reasons why people are too lazy to manage their budget. Are you also one of those people? Now, you don’t need to be one of them anymore. We have the 50 20 30 budget method you can use to make the plan for spending your money.

50% of Budget – Needs

The 50 20 30 budget method divides how you spend your money into three different purposes. The first one is 50. It means you use 50% income after tax to pay every expense you need to live. It includes the payment for the debt, loan, bills, insurance, health care, meals, groceries, transportation to go to work, car maintenance, and other primary needs. As for the debt, you use this part to pay the minimum amount of your debt.

30% of Budget – Wants

The next part of the 50 20 30 budget formula is the 30. This represents 30% of your after-tax income. This is your right. You can use this amount of money to spend on anything that you want. For example, if you want to watch a movie, buy a new gadget, vacation, or anything that you want, you can use this amount of budget.

However, you also must understand that this is only 30% of your income. Therefore, you also need to readjust the things you want with this amount. You can’t buy something with a price that exceeds this number or your income. But, you can still buy that item by saving part of all of the 30% of your income. Once you have enough money from saving money using this part, you can use it to purchase that item.

20% of Budget – Savings

The last part, which is 20% of your budget, is the part you will save. You can save it in many ways, such as a bank, investment, or in gold. At least, you have enough savings for living for three months. This saving is also including the emergency fund.


As you can see, with the 50 20 30 budget method, you can easily know how much budget you can use for different purposes. It helps you to manage your money easier. More importantly, this method also allows you to have a better future with better financial conditions.

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