Which Kind Of Budget Method Is Right For You?

50-30-20 Budgeting

50-30-20 budgeting, which is broken down by percentages, is one of the most popular methods of budgeting in America. It helps families save money, pay down their debts, and live without financial worries. The fifty percent portion requires families put half their income to the most important things they need in life such as their mortgage, insurance payments, and other necessities. The thirty percent piece is for the fun stuff in life such as travel, date nights, and family fun. Finally, the twenty percent portion is applied toward financial goals such as savings, debt repayments, and retirement accounts. If someone wants to go a step further to take this budget seriously and get out of debt, they can reallocate their thirty percent to financial goals and use the twenty percent for fun and entertainment purposes. This is an outline allowing families to get their financial priorities in check, and individuals to figure out how to save, get out of debt, and live comfortably.

Continue reading to find out if a reverse budget is the way to go.