Two systems that can help with financial planning: 50/30/20 and Envelope savings.
50/30/20
The 50/30/20 rule is a popular budgeting method that allocates income into three categories: 50% for needs, 30% for wants and 20% for savings and debt repayment. This approach aims to provide a balanced and manageable way to manage finances by prioritizing essential expenses, discretionary spending and financial goals.
Envelope savings
Take a few envelopes, write a specific expense category on each one: groceries, rent, loans, etc. Put the money to spend in those envelopes.
Chris Parrott is senior vice president/ regional marketing manager for FirstBank and can be reached at Chris.Parrott@firstbankonline.com.
