50/20/30 Rule


The 50/20/30 rule splits your budget into 3 main categories.  50% of your monthly total income is spent on fixed costs that are necessities.  These expenses do not vary much each month and are typically used for mortgage payments, utilities, and vehicle payments.  20% is invested in financial foundations to save for retirement or for emergency funds.   This is for long-term savings such as an IRA or reducing short-term debt such as credit card monthly payments.  .  30% is on variable spending that does indeed vary from month to month.  The activities included in the category are eating out in social settings, groceries, shopping, hobbies, and entertainment.   30% is for lifestyle choices that enhance mood and helps individual’s social life.

50/20/30 rule is a guideline everyone should implement because you will truly understand where your money is going.  It is a great way to budget because there is a starting point for dividing your money.  Websites such as Mint.com has budget software to implement 50/20/30 rule to its fullest.  Anyone can keep track of their budget everyday and the software even adjusts for situation changes that increases or decreases your budget.  There are many things that distract individuals from achieving their goals especially when it centers around saving money.  Instead of going blind with budgeting and saving money, individuals should embrace the practical management strategy of 50/20/30 rule.

Don’t just visit the dollar store make it a habit


The most efficient way to eliminate major debit is to watch what you spend. Purchasing items at the Dollar Store eliminates cost. Social class does not matter in the Dollar Store because even wealthy understand the benefits to this phenomenon. At any Dollar Store individuals can find everyday items at or close to $1.00. Dollar Stores are able to keep their prices low because many of their items are substandard. As a result, careful shopping will provide benefits most customers don’t see. Purchase storage containers that are BPA-free, craft, and holiday items are usually great deals. This includes frames, poster boards, glue, pipe cleaners, crayons, wrapping paper, poster boards, markers, etc. Shopping online is actually a benefit because shoppers can see whats available at a Dollar Store, Dollar General, Dollar Tree, Family Dollar, etc. One can find weekly specials and coupons on their websites. If the customer provides their phone number Dollar General saves and organizes the coupons for you! During check-out enter your phone number to automatically apply the savings. Manufacturer coupons are accepted and cash register receipts typically provide coupons as well. Some items to stay away from are knives because they are not sharp, batteries, most toys because they easily break, vitamins, and food. Below are a list of items that are typically great purchases at the Dollar Store:

Project display boards, tab dividers, poster board, binder clips, dry erase supplies, scotch tape, mailing supplies, file folders, books, education supplies, wrapping paper, ribbon, candles, gift bags, greeting cards, streamers, balloons, dog and cat treats, nail sets, hair accessories, mirrors, sponges, ear plugs, rubbing alcohol, hot patches, brand name medicine, socks, brand name mouth wash, cotton balls, toothbrushes, shaving cream, spices, string cheese, candy, cleaning supplies, kitchen supplies, and home decor. Notice there is not much of a list for foods, electronics, and vitamins to purchase at the Dollar Store.