budget plan template weekly and biweekly

Budget plan template weekly and biweekly how to#

If you build a budget that works with this method, you are probably being VERY frugal with your NEEDS, and choosing cheaper housing and transportation options than most.

Americans save less than 10% of their income, so pushing that up to 20% is a MUCH IMPROVED figure, and can give you boost to your net worth. This budget is for people who need a QUICK way to measure how they are doing.

Budget plan template weekly and biweekly how to#

I think you should bring your WANTS down a minimum, and pay AS MUCH AS POSSIBLE on your debt to get it GONE quickly.Īs for HOW to do this, I personally used and recommend the Debt Snowball Method to tackle your debts and build momentum to keep going! Who Is This Budget Method For? I believe this is NOT enough to REALLY pay off your debt. It simply states that 20% of your income go toward debt payoff and savings. The problem with this budgeting method is that is doesn’t give any clear guidelines on HOW to pay off your debt.

Now Brittney’s budget is in line with the 50 / 30 / 20 rule, and she can put more toward debt payoff on her car loan to pay it off MUCH quicker! How Do You Pay Off Debt With A 50 / 20 / 30 Budget? $150 (more shopping online + Rakuten cash back!) She can adjust her current spending to fit the rule, her updated budget would look like this: NEEDS Here’s what her ORIGINAL spending might look like in her life: NEEDSĪs you can see, Brittney is currently overspending on her NEEDS and WANTS, and is not putting enough toward her debt payoff and savings to fit the 50 / 30 / 20 rule. Brittney will need to take a look at her current spending and then ADJUST her life to fit the 50 / 30 / 20 guidelines. $4,000 x 20% = $800 for SAVINGS / DEBT PAYOFF Step 3: Adjust Your ACTUAL Spending To Fit Here’s what her budget is going to look like: Using the percentages, Brittney is going to take her $4,000 income, and split it up 3 ways. Step 2: Split your income between the 3 categories Her total monthly income that she will budget based on is $4,000. For those paid bi-weekly, this will be the total of 2 paychecks.Įxample: Brittney gets paid $2,000 every 2 weeks. How To Set Up A 50 / 30 / 20 Budget Step 1: Figure out your total monthly incomeįor this budget, you need to figure out your total monthly take-home pay. Let’s walk through an example of how this would look in a monthly budget. According to the book, your 401k should be included in the 20% for savings, but since your 401k is deducted before you get your paycheck, it makes way more sense to budget on your take-home pay instead. Note : This budget is for your after-tax pay.

20% of your income goes toward Debt Payoff and Savings.

30% of your income goes toward your “ Wants” (Shopping, Entertainment, Restaurants, Hobbies, Etc.).

50% of your income goes toward your “ Needs” (Housing, Groceries, Utilities, Transportation, Bills, Insurance, Debt Minimum Payments, etc.).

It’s a simple rule to give a general guideline on how to budget your money. The 50 / 30 / 20 Rule was first coined by Elizabeth Warren and her daughter in her book All Your Worth: The Ultimate Lifetime Money Plan.

What Budget Apps Work With The 50 / 30 / 20 Rule?.

How Do You Pay Off Debt With A 50 / 20 / 30 Budget?.

Step 3: Adjust Your ACTUAL Spending To Fit.

Step 2: Split your income between the 3 categories.

Step 1: Figure out your total monthly income.