Most budgeting tips don’t include people on low or fixed incomes. But everyone should be able to find budgeting advice that works for their finances and doesn’t leave them with only pennies left over each month!
Here’s a budgeting strategy that could help you no matter your income: the 70-20-10 rule.
The popular 50-20-30 rule says you should dedicate 50% of your paycheck to necessities like rent, 20% to a savings account, and 30% to investments. But many of us don’t have half of our paychecks left over to save and invest!
The 70-20-10 plan might be more manageable.
In the 70-20-10 budgeting rule, 70% of your paycheck goes to must-have spending. Next, you allocate 20% to an emergency fund, like a savings account.
Lastly, 10% goes to donations, investments, or just fun spending money.
The 70-20-10 budgeting rule, like most financial advice, can seem daunting. But you can always customize any financial advice to fit your lifestyle.
These percentages can be changed depending on your situation that month. Some months you might need to give a little less or a little more to your emergency fund, for example.
This budgeting tool has the power to give people who don’t make a lot of money the opportunity to save and stay organized, especially when prices keep going up!