Do you know about the 50-30-20 rule of budgeting?
This rule is an easy way to evaluate how much you should be spending on a monthly basis by recommending that you spend 50% of your income on needs, 30% on wants, and 20% on savings and debts.
For example, let’s say you make $1,000 in a month.
Fifty percent of that is $500, and you’d put it toward something like your rent or mortgage, groceries, and utilities.
Thirty percent would be $300 for wants, such as clothing, hobbies, or entertainment.
The last 20 percent, $200, goes toward your savings and debts. You should always make at least the minimum payment on all debts, but if you have additional money to spend in this category, you could use it to aggressively pay down debt or add to your savings.
For more information about how to track your spending, visit southernbank.com/getwell. See you next time on Money Matters!
