#Books personal budget excel spreadsheet how to#
#Books personal budget excel spreadsheet download#

This example is a couple making $125,000 per year. 50-30-20 household budget percentages – a $125,000 income example

So she’s saving the other $150 per month for an emergency fund. It’s sometimes difficult, but completely possible to be debt-free! For this scenario, we’re going to assume she’s debt-free besides her car. That leaves her with $150 for other savings or debt repayment. So in this scenario, let’s assume 10%, or $300, will go to a 401(k). In fact, financial experts recommend 15%-20% for retirement.

#Books personal budget excel spreadsheet how to#

Related: Exactly How to Save Money for Vacation (a Vacation Savings Plan) 20% savings with a $3,000 monthly incomeĪs a money coach and someone looking out for your best interest, I’d highly recommend to save no less than 10% for retirement. That leaves her $250 for entertainment, donating to charity or other lifestyle choices. She might spend $200 per month for eating out, $250 per month for travel (she loves a good vacation!), $50 for a pet, $100/month for a cell phone bill and $50 per month for internet. With a $3,000 monthly income and allocating $900 to this category, it might look like this: Read next: How to stick to a budget: 15 tips to win with money Wants (lifestyle) category with the 50/30/20 budgeting rule on a $48,000 salary Let’s review the ‘wants’ category for this income. Meaning, this woman will need to watch her expenses closely to make it work on her $48,000 income. But this budgeting plan is meant to set you up for the best financial future. Using this example, the ‘needs’ budget appears to be tight, and downright unrealistic in some housing markets. Another $175 could go to utilities, $225 for her car (including low payment, insurance and maintenance), $175 for medical insurance and $175 for basic groceries. Let’s say she pays $750 per month for rent or mortgage, then she has $750 left for her remaining needs. If she chooses to pay $554 per month for a new car ( the average car payment in the US), that expense should go in the ‘wants’ category because she could probably get a more affordable car. So as you can see, at $48,000 per year as a single person, paying something like $1,300 for a high-priced home or rental is going to be tough. Remember to keep reading to the bottom for the 50-30-20 rule spreadsheet! 50% – needs on a $48,000 annual salary So her 50-30-20 budget starts with $3,000 per month Based on current tax laws at the time of article publication, I’m estimating her employer deduction for taxes, Medicare and social security at 25%. Photo credit: Nikki’s 50/30/20 budget – example with a $48,000 incomeįor the first example, I’m going to review a single woman making $48,000 per year. Next, let’s take a look at 2 example budgets to see how the 50/30/20 rule works. Remember this budget strategy is meant to be simple so don’t overcomplicate it! If you have health insurance or retirement is taken out automatically, add that back in to include those costs in your 50/30/20 categories. So exclude federal requirements that your employer takes from your paycheck: state and federal income tax, Medicare and social security. You’ll use your after-tax income to start your calculations. How to start calculating a 50-30-20 budget

Saving for a specific item like a new car or vacation.

The savings category includes savings and debt repayment (although many times your debt is a ‘want’ so it should go there!)

Non-essential vehicle purchases/upgrades.

Car and insurance (we’ll get to car payments later)Īlso known as lifestyle choices, this category includes the ‘extras’ in life or certain lifestyle choices you’ve made that make you happy.

This budgeting category includes anything you need to live, work and survive this crazy life. Your income goes to needs, 30% to wants and 20% to savings.

#Books personal budget excel spreadsheet download#

Make sure to read to the bottom of the article to download the free 50 30 20 rule spreadsheet! Here’s how to use the 50 30 20 budgeting rule How this budgeting strategy started: Senator Elizabeth Warren founded the rule in her book, “ All Your Worth: The Ultimate Lifetime Money Plan.” (Buy it here on Amazon.) It’s a strategy designed to balance your needs and wants, while making sure you’re saving for a solid financial future.īasically, the 50 30 20 budgeting rule is the foundation for getting your financial life in order. I’ll break it down for you here and provide a 50 30 20 rule and spreadsheet. It’s perfect if you’re looking for an easy budget strategy or new to budgeting. The 50-30-20 budgeting rule is a simple plan to manage your money.