Budgeting
Budgeting creates a plan for spending and saving by tracking income and expenses, ensuring financial resources align with priorities and goals.
How to Create a Budget
Creating a budget involves calculating income, tracking expenses, categorizing spending, setting financial goals, and regularly adjusting allocations to stay on track.
The 50/30/20 Rule
The 50/30/20 rule allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment, providing a simple budgeting framework.
Zero-Based Budgeting
Zero-based budgeting assigns every dollar of income to specific categories including expenses, savings, and debt, ensuring income minus expenses equals zero.