What is a Balanced Budget?
Welcome to our Hoyes Michalos Debt Free Digest where we round up personal finance topics from around the web to help you live, and remain, debt free.
The best budget is one that lets you cover all your expenses, while still having room for fun. We know that this is getting tougher with inflation. That’s why this month, we’re showing you how to build a balanced budget so you can perhaps find ways to reduce your stress affording what you need and some of what you want.
Create a Realistic Budget For Your Family
Budgets are harder to follow when you don’t consider all the spending areas – like the fun stuff.
Let this guide help you build a balanced budget that includes all your financial goals, as well as, the areas that bring you joy. It’s the best way to ensure your budget succeeds.
Good Reads From Around the Web
The 50-30-20 Budgeting Rule For 2023
The 50-30-20 rule says that 50% of your spending should go to needs, 30% to wants, and 20% for savings. While that would be ideal, it may be harder to follow this rule with cost of living so high these days.
So how can you meet all your needs, wants, and savings goals? Tune in to this discussion with Maureen Parent and Doug Hoyes, as they share practical tips for making this budgeting method fit into today’s cost vs. income reality.
4 Tips For a Successful Budget
Have a fun category. We can’t stress this enough. The main reason why budgets fail is because they are too strict. You are human. You need room for fun and relaxation so make sure your budget covers that.
Plan for unexpected expenses. Cars break down. Your work hours can be reduced. If you don’t have savings to fall back on, you’ll need to turn to debt to meet emergency expenses. Make sure you’ve got a buffer for unexpected costs. Even setting aside $20 a week will help you build a small fund in no time.
Have a miscellaneous category. This is different from fun. This is for expected expenses that don’t come up frequently like a birthday or holiday gift, for example. Setting aside some funds for this category will save you from relying on credit.
Use the budgeting approach that works best for you. Whether this means using a spreadsheet or automating your bills and paying them as you get paid. If you like using workbooks, download our free sheet here. And if you would rather automate, learn more about the no-budget budget.
$50 President’s Choice Gift Card Giveaway
Enter for your chance to WIN 1 of 10 free $50 President’s Choice gift cards!
Save on your groceries and household needs this month by entering our giveaway to win a free $50 gift card from President’s Choice.
Enter soon. Giveaway ends June 29, 2023 at 11:59 p.m.
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