Budgets help you, not limit you
According to financial educator Tiffany Aliche, “Keeping a budget allows you to say yes to your goals in a strategic way. If you have a budget, you can save for the vacation, house, or car you want to get. You can look at it as ‘No McDonald’s,’ but I see it as ‘Yes to a trip to Paris.’ A budget is not a NO plan, but a YES plan with actual steps towards achieving your goals.”
Follow the 50/20/30 rule
If you want to make budgeting a whole lot easier, consider the 50/20/30 rule, advises Lynn Toomey, co-founder of Your Retirement Advisor. This means you should use 50 percent of your income for necessities like food, house payment, utilities, and transportation. Set aside 20 percent of your income for emergencies, retirement, savings, and debts. The remaining 30 percent can be used for non-essentials like entertainment, vacation, and gifts.
