New Year’s resolutions are just ahead, and many will review their finances with new budgets for 2026. So let’s look at a guide on using budgeting as a tool to manage short-term needs and long-term financial goals.
The 50/30/20 budget method has been a useful tool for so many. It’s a straightforward, high-level structure that you can use to help make quick decisions and adjustments as you go.
50% for Needs: In this budget method, the largest portion of your income goes to the non-negotiables: housing, utilities, transportation, groceries, and health insurance. This also includes minimum debt payments and other obligations that affect your credit health.
30% for Wants: Your “wants” are those things that enhance your quality of life but aren’t essential to get you from day to day. These could be one-off purchases, such as new running shoes or dinner out with friends, or recurring expenses, such as gym memberships or streaming services.
20% for Long-Term Goals: The remaining portion of your budget is off limits for spending, because you’ll be setting it aside as savings, putting it toward debt repayment, or, if you’re more comfortable with risk at this stage in your financial journey, using it to invest.
The full article with detailed suggestions is here.
Your financial journey starts with SouthEast Bank.
Olivia Johnson is marketing strategist for Southeast Bank.
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