50/30/20 Budgeting
What does the 50 represent in 50/30/20 Budgeting?
Your Needs
Name three types of expenditures.
Food
Gas
Entertainment
Your rent costs $500, and you have $2,000 in your bank. How much will you have leftover?
$2,000
What does the 30 represent in 50/30/20 Budgeting?
Your Wants
Name two types of incomes.
Wages/Salary
Investment Income
Annuities
Retirement
How would you split $5,000 using the 50/30/20 Budgeting strategy?
50%- $2,500
30%- $1,500
20%- $1,000
What does the 20 represent in 50/30/20 Budgeting?
Your Savings
Name three parts of a budget.
Income
Bills
Debt
Savings
Sinking Fund
Miscellaneous Spending
Which three of these is considered a WANT?
Car Note
Gym Membership
Clothes
Car Maintenance
Eating Out
Eating Out
Gym Membership
Clothes
What's the main idea of 50/30/20 Budgeting?
Main idea of 50/30/20 budgeting is to divide your after tax income into three categories, needs, wants, and savings
Name two reasons to set up a budget.
Prioritize spending
Savings, investment, or debt repayment
Planning for major purchases
Adjusting spending habits
Evaluating lifestyle purchases
What is another name for a Sinking Fund
Rainy Day Fund
What can you do to find out how much you have to spend in each section of 50/30/20 Budgeting
Equation that can be used is to multiply your take-home pay by 0.50 (for needs), 0.30 (for wants), and 0.20 (for financial goals).
What is the difference between savings and sinking fund.
Savings- Used for big purchases
Sinking Fund- Used for smaller unexpected costs
There are three types of budgets. What are they?
0 Budget
Percentage Budget
Envelope Budget