We the People of New York 233 W. 14th Street New York, NY 10011 (212) 633-2200
How To Budget Your Finances
How To Budget Your Finances
By
We The People
3 Simple Budgeting Tips
Budgeting is a money plan that helps people handle their money well (and avoid bankruptcy). There are different ways to make a budget depending on what you want to do with your money. Here are 3 common ways people do it:
80/20 Rule:
The most simple way to manage your money. Instead of sorting every expense into different categories.
You save 20% of your money and spend the rest however you like.
It's an easy way to make sure you save some money without overthinking your spending.
70/20/10 Rule:
Think of your monthly income as a pie, and you divide it into three pieces.
70% of the pie goes to your needs (like housing and groceries).
20% goes to your wants (like movies or video games).
10% goes to savings or paying off debts.
Envelope Budgeting:
Imagine you have envelopes for different categories like "food," "entertainment," and "savings."
You put a specific amount of money in each envelope at the beginning of the month.
You can only spend what's in each envelope, so it helps you control your spending.
