What is the 50 30 20 rule?

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

How to save money 50/30/20?

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings . The savings category also includes money you will need to realize your future goals.

How to save money aggressively?

When you're trying to save aggressively, the goal is to make the gap between income and expenses as wide as possible. There's no single way to make a budget. For example, you might try zero-based budgeting, the 50/30/20 budget method, or cash envelope budgeting.

What is the 10 rule for saving money?

The 10% rule of investing states that you must save 10% of your income in order to maintain a comfortable lifestyle during retirement . This strategy, of course, isn't meant for everyone as it doesn't account for age, needs, lifestyle, and location.

What is the 30 day rule?

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy . During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

Is $4000 a good savings?

Ready to talk to an expert? Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.

What is the rule of thumb for savings?

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

How do you pay yourself first?

What is a 'pay yourself first' budget? The "pay yourself first" method has you put a portion of your paycheck into your savings, retirement, emergency or other goal-based savings accounts before you do anything else with it . After a month or two, you likely won't even notice this sum is "gone" from your budget.

6 Ways To Save Money This Year - Love More Live Blessed (2024)

Is your savings account sad to look at? Do you wish you had a couple more zeros in there? Yeah, me too. But take some comfort, below are 6 money saving tips that have helped my family save money!

Clean with E-Cloths. I bought the e-cloth Home Cleaning Set, 8 Piecebecause I was sick of using paper towels and wanted dedicated towels for cleaning. I kept seeing Norwex pop up in my Pinterest feed and wanted to see what all the fuss was about. The Norwex sounded great but after looking at the price I knew I couldn’t afford those cloths right now. I kept researching and reading reviews and finally found e-cloths which I bought from Amazon. Now all I want to do is clean, they work great. And the whole premise of the Norwex/Ecloth thing is that you don’t need chemical cleaners, only water! Saving you money and exposure to toxic chemicals. Win, Win…..

Drink coffee at home.This saves me tons of money each year. I drink 2 cups every morning and on a special occasion I buy Starbucks, then I’m like “Hello Starbucks, my old friend.”Seriously though, if you have a habit of buying a $2 cup of coffee from the drive-thru everyday of the work week, you spend $520 a year on coffee!I’d rather spend that amount of money on a family vacation, back-to-school clothes or savings! I use a Keurig and have a reusableK-cup, I buy coffee at Walmart, Sams or Costco and save tons. Because, even the K-cups get expensive, I saw a box of 18 at Walmart last night for about $10, and that wouldn’t even last me 10 days!

Set a food budget & Plan your meals. I used to make my meal planning so complicated, then I would buy too much food and would kick myself at the end of the week when I had to throw food away. Now, I keep it simple. I write down what I I am making for the next week, grocery shop and stick to my list and my $100 food budget. This helps because I only buy what I will be using so I am not wasting food or money. Check out my What’s for Dinner board on Pinterest for inspiration.

Cut the Cable. Just do it. Today. Call your cable company and cancel your service. This was hard for us. We had one full year of a cable bill of $120 per month, that was $1,440we spent on TV. Seriously, that could have went to my student loans, a savings goal, a vacation….anything. But no, we spent it on TV, that we didn’t watch most of the time. Now we use Netflix, and Amazon Prime Videosor RedBox. And, during Walking Dead we go to my parents house to watch it. We honestly don’t miss cable and definitelydon’t miss the price. I think we have better things to do with the $1,440 each year!

Shop During Major Sales.I love shopping. I love Bath and Body Works. I love Victoria Secret. But, I don’t shop there as much as I used to anymore. What I don’t pass up though are the Semi-Annual Sales,if all this talk about saving money is getting you down, perk up! Now we are talking about spending 🙂 I really love combining coupons and sales. Just make sure you ask when your favorite store has their Semi-Annual Sale and sign up for the emails and/or rewards program. For Bath and Body Works I got an email for $10 off 40 and all the lotions (full price 13.50) were around $3.25-3.50, I bought 12 lotions (to use as game prizes at my sister’s upcoming babyshower) and after my coupon I ended up spending about $2.75 per lotion! Keep an eye out after each holiday season for deeply discounted items! Happy shopping but don’t forget to set a budget!

Family Game Night.As much as we love going out as a family, we also kinda don’t love it. Our 2 yr old is very rambunctious so keeping her under control during a family outing is the top priority and can really feel like more work than fun. Plus, family night outs can get pretty pricey when you factor in all the related costs. We do Family Game Night. Pick a few games, easy snacks and get your competitive spirit going! We love Uno Card Game,Pie Face Game(great for the little ones) and War. Yes, that old fashioned game played with playing cards! I taught my kids how to play War this New Year’s Eve. They loved it!

So there you have it. Six simple ways to save money this year. If you are looking to make a change in your financial life I recommended Dave Ramsey, look intoFinancial Peace Universityand The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitnessthey are literally life-changing. You will get the must-needed motivation and steps to get closer towards financial freedom. Plus, I love his no nonsense attitude towards money, I really need some of that! If you have time to poke around his site, he has freebies too, so get started on the baby steps!

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6 Ways To Save Money This Year - Love More Live Blessed (2024)

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