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What is the 50 30 20 budget rule?

The 50-30-20 rule is comprehensive and covers all bases. And don’t worry if math isn’t your thing because we’ve included 50 30 20 budget spreadsheet ideas to help you stay on top of your budgeting strategies. That said, let’s take a close look at this budgeting rule, including what it is and how it works.

Why is the 50/30/20 budget so popular?

One of the reasons the 50/30/20 budget is popular is because it allows for 30% of a consumer’s income to go toward discretionary spending. Unfortunately, that doesn’t leave as much room for savings and paying off debt.

How do I create a 50/30/20 budget?

Step 1: Figure out your take-home pay. The first step in creating a 50/30/20 budget is to figure out your net income since that’s the figure you’ll be dividing from. Your net income is how much you take home after payroll taxes are deducted. Look at your most recent pay stub to see what your take-home pay is.

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