50/30/20 Rules

The 50/30/20 rules sayes that you should allocated 50% of your income to need , 30% to want , and 20% to saving. Money for your future to inculded in the saving category.

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What do you mean by budgeting

It is defined as a macroeconomic concept of the exchange of good. The budget meaning the financial term refers to a plan to spend your money, Hence the spending plan is called budget.Creating a plan of a budget allows you to check weather you wil have enough money to fulfill your wish and prioritize your task. Budget is a source to managing your monthly expenses & help to plan for
unexpected life events. The budget range from a week to a month or even a year. Typically, indiviuals prepare monthly budget and most organisation prepare an annual budget & review at periodic intervals. People can make budget from hands or make spreadsheet or in a budgeting app base on comfort. This usally have two types - Statics & flexible. The statics budget remain unchanged during the life. The originally calculated account and. conversely, a flexible budget has a relational values to certain variables. A extream change in variable impacts the hole budget. Both budget are useful to management. A static budget guages usefulness and flexible budget offer practicle insight into business.

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What the purpose of a budget?

It's is not only useful for individuals who struggle financially.
Budgeting can hepl as below:-

• Financial Acuareness :- Budgeting help to understand your relation with money. By budget you can know abut your income, spending scope.
• Emergencies:- An ideal for emergency and plans for goals or voceations.
• Reduce dept exposure:- A budget hepl you to set out expenses and reduce overspending
• Releives stress:- Formulating a budget and stick to it ensure finacial independence.
• Reorganize expenses:- Budgeting help to predit the month those have tight finance and one with extra liquity

What about budget forecasting and planning

Regular budgeting makes it possible to keep a track of your finances. Overtime, you may create budgets for and extended period. By using realistic budget for an long-term financial planning with sensible managing about your income. You may even plan for higher goals like a setting business, buy properties etc. Sticking to a budget is equally important, budget plan & budget forcasting are usefull. Below there are some important points of planning and forcasting of budget.

1. Withstand the urge to use swamp debt and instead conscentrate on financial freedom.
2. Remove option which allow you to make urge purchases. Set a barrier that stop you t cheating from budget.
3. Effect of irrespective devoted to budgeting, it is difficult to divine fund requirement at each life stage, A periodic budget measure the progress and tweak if it's requied. At each point, it line up your budget and long-term finacial goals.It important to learn about financial management and educate yourself to handle your finances.
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Ways to budget you're broke

Anyways of various planning and provision you may suffering from increasing bill and low funds. The below solution steps helps you with your finance.

1. Avoid immediate disater:- Don't wait to request adjunct and payment plans from your creditors. To avoid an disater, apply for an credit facility delaying payments may increasre financial cost between late fee and penalties . It is also crash your credit score .
2. Prioritize payments:- Analyze all your payment and prioritize them on due date. You also want to know about if some of your bills already due. In case, can reach out the billing company and understand that the payment can get back on track.
3. Other income source :- An alternative of saving or reducing your expenses is consider working overtime, getting a secound job, a side business ect. The primary purpose of budgeting not to cut your expenses it is a way to manage your finances create a future.
4. Budget general:- In addition of following the steps are giving progress for a few month is important you can note down your expenses in a notebook or use budget app to measure how much you track verses how you track your money.

Thank you people for giving your precious time to reading my blog. I hope this will make you feel good and see you on my next blog. I will upload my work very soon stay tuned for that.

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