Start Fresh: Budgeting Tips for Financial Health in 2024
It’s a new year and a new you! Have you considered your financial health as a part of your 2024 goals? Budgeting using the 50/30/20 method is a perfect place to start. Dividing your income into priority categories can help you gain control and build savings.
Needs – 50% Cover essential living expenses like housing, food, transportation, utilities, and other bills first. Some needs are defined based on your lifestyle, e.g., childcare or Wi-Fi for work.
Wants – 30% Spend here on non-essentials you enjoy, like dining out, vacations, and streaming services. Everyone’s “wants” differ and are both healthy and important to incorporate into your budget!
Savings & Debt Payments – 20% Pay down balances while also growing savings. If you are saving via a retirement account, that can be included in your savings percentage. Determine the right ratio of savings and debt payments within the percentage based on your goals.
The benefit of methods like the 50/30/20 budget is adaptability. Adjust percentages to find your perfect balance of spending, saving, and living happily. Get started now – a little planning today means more financial freedom tomorrow. This is the year for stability and peace of mind!
If you need assistance with building your budget, contact our certified financial coach at:
creynolds@newdimensionsfcu.com
(207) 660-6267