The program helps people allocate certain amounts of their income into three very important buckets
PHOENIX (PRWEB) February 22, 2018
The 50-30-20 budgeting can be a great budgeting tool and National Debt Relief explains the program in detail for consumers. The article titled “Is 50 30 20 the Best Budget Breakdown for Me?” released February 16, 2018, aims to provide people some tips to better understand the budgeting style and use it to their own advantage.
The article starts off by pointing out that there are a great number of Americans who are struggling to manage their personal finances. There are also a lot of Americans who have a bad credit rating making it more challenging for them. This is one of the reasons why the article aims to help people in budgeting their finances.
The article starts off by explaining what the 50-30-20 budgeting system is so consumers can better understand it. The program helps people allocate certain amounts of their income into three very important buckets. One of their expenses, another one for discretionary income, and the last one for their savings.
The essential expenses take the top spot at 50% of their income. This means that consumers can allocate half of their monthly earnings for the essentials. The article shares that this can be their mortgage or even rent payments. It should also cover their food expenses, healthcare payments, utilities and other. What people need to remember is that there are the expenses they really need.
The article then explains that the next one will be 30% for the discretionary expenses of consumers. This is a little more flexible as it includes entertainment expenses, restaurant dining, movies, and even cable bills. The remaining 20% would then be applied to savings such as emergency fund and even retirement, investment, and even debt payment.
One of the most important tips the article shares is where consumers should start computing for the 50-30-20 budgeting strategy. It is crucial that they look at their after-tax income. Making computations from their gross pay can put this strategy in peril.
To read the full article, click https://www.nationaldebtrelief.com/50-30-20-budget-breakdown/