Creating a Budget
A budget is the foundation of financial literacy. We can teach you how to manage your money and build confidence in your financial decisions, taking charge of your financial future.
A budget can help you make confident decisions and enjoy peace of mind.
A detailed budget, though, can be complex to manage. The 50-30-20 rules splits expenses into just three categories.
It also offers recommendations on how much money to use for each. With some basic information, you can get on the road to financial well-being.
Let’s begin the budgeting process by taking a look at your paycheck.
Step 1. Determine Your Total Earnings
Determine your total earnings by subtracting any taxes that were withheld. Do not subtract other amounts that may be withheld or automatically deducted from your paycheck, like health insurance or retirement contributions. These will become part of your budget. To help you stay organized, download our budgeting worksheet below.
Step 2. Determine Your 50-30-20
Using the 50-30-20 budget rules, put all of your expenses into one of the budgeting categories. Look at each box below for a more detailed look at what should be included in each category. To help you stay organized, download our budgeting worksheet below.
Example of the 50-30-20 Rule
Step 1
$75,000 (Earnings)
– 11,250 (Taxes)
= $63,750 TOTAL
Step 2
Total x 50% = $31,875
Total x 30% = $19,125
Total x 20% = $12,750
Want to Learn More?
