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  • Budget Summary

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    Jarred Laven
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    Budgeting is important to manage your income and expenses. You should allocate 50% of your income to needs, 20% to savings, and 30% to wants based on the 50/30/20 rule. Creating a budget provides clarity on spending, helps spend money wisely, and assists in reaching financial goals while keeping debt under control. Evaluating your actual spending periodically against your budget allows you to track your finances and make adjustments.

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    Budgeting is important to manage your income and expenses. You should allocate 50% of your income to needs, 20% to savings, and 30% to wants based on the 50/30/20 rule. Creating a budget provides clarity on spending, helps spend money wisely, and assists in reaching financial goals while keeping debt under control. Evaluating your actual spending periodically against your budget allows you to track your finances and make adjustments.

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    4 views2 pages

    Budget Summary

    Uploaded by

    Jarred Laven
    Budgeting is important to manage your income and expenses. You should allocate 50% of your income to needs, 20% to savings, and 30% to wants based on the 50/30/20 rule. Creating a budget provides clarity on spending, helps spend money wisely, and assists in reaching financial goals while keeping debt under control. Evaluating your actual spending periodically against your budget allows you to track your finances and make adjustments.

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    of 2

    Summary

    1 3 4
    HOW TO BUDGET? HOW DO YOU BENEFIT BY DOING A BUDGET?
    A budget is your roadmap that will
    guide you to manage your income and ★ You have clarity as to what you spend your
    expenses Income Be aware of money on
    what your ★ A budget helps you to spend your money
    income is
    wisely
    ★ It provides you peace of mind
    50/30/20 - ★ A budget assists you in making good
    Use this rule to financial decisions and allow you to take
    allocate your rule
    2 income
    advantage of financial opportunities
    ★ A budget helps you to reach your financial
    and personal goals
    WHY IS IT IMPORTANT TO BUDGET?
    ★ A budget can help you to keep your debt
    50% Income levels under control
    ★ If You Don’t Measure It, You Can’t These are the
    NEEDS
    Manage It items that are
    5
    ★ It Helps You Keep Track Of Your essential for you,
    THE POWER OF COMPOUND INTEREST
    Long-Term Goals like food, etc.
    ★ Helps You Prepare For
    Period Amount Interest Amount @
    Emergencies
    Invest end
    ★ To reduce Bad Spending Habits 20% Income
    ★ Keep You From Overspending Guideline as to SAVING
    how much you Month 1 R100,00 R5,00 R105,00
    should spend on
    investing or paying Month 2 R105,00 R5,25 R110,25
    off debts

    30% Income Month 3 R110,25 R5,51 R115,76


    Evaluate These are the
    periodically
    WANTS
    items that are Month 4 R115,76 R5,79 R121,55
    your actual “nice-to-have” and
    spend with your which you can
    budget Track
    survive without Month 5 R121,55 R6,08 R127,63

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