Let's have a casual conversation about budgeting. shall we?
Honestly, the word 'budgeting' does not sound all that fun to most average people and let's just say that i felt exactly the same way. However, i have recently discovered the ultimate power and benefit of actually setting up a budget and financial goals. Now? Well, now the word budgeting sounds like a magical solution in my life helping me to be more responsible and aware of my financial decisions rather than just perceiving it to be a tedious and boring task.
See the thing is, you can get as technical as you want to get when it comes to budgeting and managing your finance. Which by the way i think is an ideal thing to do as you start and tweak your budget you will find yourself constantly learning about your spending and saving habits therefore able to get more technical towards your budgeting approach. But as a beginner, setting a budget and tracking your income and spending can indeed initially feel like a giant matter of 'WHY?' in your head.
Anyways, so as i came across the 50/30/20 formula which perfectly explains in 4 easy steps on how you can easily divide your income and spending and budget accordingly. The concept of 50/30/20 is an excellent learning tool for all new budgeters that initially have no clue on how exactly to set and divide their budget effectively. I have found this awesome infographic that i have included below and blog post by brightpeakfinancial regarding the 50/30/20 formula. I love finding and sharing helpful things that i myself find valuable as well as passionate about. Check out this awesome infographic (Love infographics!)
Infographic by brightpeakfinancial
How to apply the 50/30/20 formula of spending:
Infographic by brightpeakfinancial |
| INFOGRAPHIC BY : https://www.brightpeakfinancial.com/ |
