Week 3: Building Your First Budget
Goal: Create a simple, realistic budget that works for you
This week, we’re focusing on giving your money a clear plan. If you missed last week’s article on understanding your expenses, you can catch up here.
Now, let’s dive into this week’s Budget 101:
The 50/30/20 Rule: A Simple Starting Point
Break your after-tax income into three categories:
- 50% Needs: rent, groceries, utilities, insurance
- 30% Wants: dining out, shopping, hobbies
- 20% Savings/Debt: emergency fund, debt payments, long-term goals
Budgeting Methods – Choose What Fits You
1. Zero-Based Budget
Assign every dollar a job. Income minus expenses = zero.
Best for those who like control and detailed tracking.
2. Envelope System
Divide money into “envelopes” (digital or physical) for each category—like groceries, gas, or fun. When the envelope’s empty, that’s it!
Helps avoid overspending and stick to limits.
3. Pay-Yourself-First
Set aside savings or debt payments first, then use the rest for expenses.
Great for building savings automatically with minimal effort.
Set One Small, Realistic Goal
Examples:
Save $300 in 3 months
Limit takeout to twice a week
Put $50 from each paycheck into savings
The key is starting small and staying consistent.
This Week’s Tasks:
- Try the 50/30/20 rule
- Pick a budgeting method that fits your style
- Set one clear financial goal
Which budgeting method do you think fits your lifestyle best?
Let us know what you’re trying, or what you’ve tried in the past 