(Jessica) Welcome to Money Matters on the Southern Bank Financial Wellness Network. I'm Jessica.

(John) And I'm John! And we're talking about what to do when your budget gets out of whack and just doesn't add up.

(Jessica) Is budgeting a four-letter word? I mean ... it seems difficult to me.

(John) It can be daunting at first, but if you keep it simple, it's easier to stay on track. Divide your expenses into three categories, and use the 50-30-20 rule. Fifty percent of your income should go to needs. These are things you have to have, such as your mortgage or rent, utilities, car payments, groceries, cellphone.

(Jessica) And the 30%?

(John) Well, 30% goes to things you want but you don't have to have. Think of vacations, dining out, new clothes. The remaining 20% goes equally to savings and debt reduction. Finally, Jessica, you should work to create an emergency fund as fast as you can. We'll get into that more next time.

(Jessica) Thanks, John. We'll see you next time on Money Matters, and remember, Financial Wellness starts here!

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