Budgeting 101
Money set aside specifically for unexpected expenses.
Emergency Fund?
Importance: Cash set aside for life's unforeseeable events.
The type of expense that generally stays the same each month, such as rent.
Fixed expenses generally stay the same, while variable expenses can change.
Importance: Knowing the difference makes budgeting easier. Rent may stay the same each month, while food, entertainment, and gas can fluctuate.
The percentage of the 50/30/20 rule recommended for savings.
20%
Importance: The 50/30/20 rule creates balance. It helps you cover your necessities, enjoy your money, and still build financial security for the future.