Since Financial Literacy is not a subject we focus on in school, I want to share with you an interesting article I found on budgeting. 

Link:

“50-30-20 Rule” for Budgeting | First United Bank

According to the article this is how your after tax budget should look:

50% – Need

30% – Wants

20% – Savings

For a novice budgeter, I think this plan is extremely doable and I highly suggest this becoming a standard plan of action.

For the experienced budgeter, I would recommend rearranging those numbers slightly. I would start by reversing the 30% and 20% entirely. 30% should go into savings, and only 20% should be utilized for wants. If you can manage, I would decrease the wants budget even further. Decrease your wants by however much you can stand to ensure your needs are being taken care of while also building your savings. The great thing about saving money is once you have it, it works for you, you no longer have to work for it.