Budgeting Basics!

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7 Steps on How to Create a Budget (Intro)

Hi, are one of those folks who are currently having trouble handling money? Do you often
ask yourself, “where did all of my money go?’’ or “how come I spent all of it?’’. Well if you
are one of them, then this video is right just for you.

Because today, we will talk about, BUDGETING.

One of the most important things you can do to manage your money is to budget. If
wrapping your arms around such a mighty task seems difficult, don’t worry. This video will
provide you with instructions on how to budget and ideas to make the act of budgeting part
of your routine.

Budgeting for Kids

To limit spending on fun things or wants to make sure you have enough money for
necessary things or needs is called a budget. If you’ve ever gotten money for your birthday
and decided to save it rather than spend it right away well congratulations you've already
completed a baby step of budgeting.

How to Start Following The 50/30/20 Rule to Eliminate Budgeting Stress

Here’s budgeting plan you can start now as a student to make it easier for you as an adult.
It's called the 50/30/20 budget rule. This is a simple, easy to implement rule that leaves
you with guaranteed savings at the end of the day, which is precisely why I love and
recommend it to so many of my friends and to you as well. Here’s how it works, this
technique breaks down your necessary expenses, leisure expenses, and savings into
percentage categories of your money. So, 50% of your money should go towards
necessities. This portion must go to items or services that you basically need, or even
groceries. Then 20% of your salary should go toward savings. This can be an emergency
savings fund or investment accounts. You decide how to divvy up this 20%. Finally, 30% of
your money is for leisure spending. So, this is the portion of your money goes towards your
favorite drink or your plans to eat out at restaurants. This 30% of your money is entirely
for you.

For instance, if your mom gives you P500.00, Using the 50/30/20 budget rule, the P250.00
should go towards necessities, then the P100.00 should go towards savings, and you can
spend the remaining P150.00 for your leisure spending.

Why use the 50/30/20 budget rule?

For me, the 50/30/20 budget rule is a simple technique that guarantees that I'm saving
20% of my money and must live within a certain means without being too restrictive. Most
importantly, it allows me to spend 30% of my money guilt-free. Plus, I already know where
the remaining 50% of my money. So, I can use the rest to enrich my life and actually live,
not merely save every penny.
So, what are you waiting for? Try doing the 50/30/20 budget rule, so you don’t have to
worry about how to divvy up your money. You can start now as a student to make it easier
for you as an adult and make budgeting, part of your routine.