How to Budget Without Driving Yourself Crazy!

To many of us, even the word “budget” can bring up anxiety. Why? The word budget itself seems to have hard, unforgiving edges reminding us of the hard work that needs to be done. It does not have to be that way! It’s time to change the way we think and feel about budgeting. Budgeting can give us a wonderful feeling of being in full control! A feeling many of us love. We want to share a useful way to structure a budget without driving yourself crazy. The 50/20/30 rule. Remember, make it a routine and soon enough it will be part of your healthy habits!

  1. 50 % Essential expenses.

First, start with our essential expenses. These are our fixed costs like housing, utilities and groceries that don’t vary much from month to month.

  1. 20% Financial priorities.

These expenses are paid after the essential ones, but before any other spending is done. They are key to a financial foundation. These could be saving, paying debt and your retirement fund.

  1. 30 % Lifestyle.

These expenses are our day-to-day expenses. It could be cable, entertainment, clothes, gym fees and so on. We need to make sure that our expenditures do not exceed our income. If we want to buy something that costs more than we can afford this very moment, hold off! Stick to our allotted monthly spending limit. Remember, impulse spending eats into our savings!

It you want to learn more about budgeting, check out our WealthWise Transformation System at our website,