Erick Forero | Personal Finance

@raiseyourequity

Are you struggling to manage your

finances?

Establishing a budgeting system that works

for you can be a great way to take control of
your finances.

Here are some popular budgeting systems

that you can try:
 Erick Forero | Personal Finance
@raiseyourequity

1. Envelope system

The envelope system is a cash-based approach to

budgeting that requires dividing the available
spending money into separate envelopes that
represent your key spending categories (Savings,
specific loans and budgets, emergency fund,
investments, food, health, personal expenses, etc).
 Erick Forero | Personal Finance
@raiseyourequity

👉 This method can help people who struggle

to stick to a budget to be more mindful of—
and deliberate with—their spending.
 Erick Forero | Personal Finance
@raiseyourequity

2. Zero-Based System

The zero-based budgeting system is a system for

allocating your money in which every dollar has a job.

That means you have to use every penny of your

income but this doesn't mean blowing it on a
shopping spree. Important goals such as saving or
paying off a debt.
 Erick Forero | Personal Finance
@raiseyourequity

👉 The main idea is to allocate all your money

to expenses for needs and wants, as well as
short- and long-term goals.

The goal is: Income - Expenditures = 0 by the

end of the month, budgeting for the essentials
and knowing how much should be
saved/spent.

Let me show you an example:

 Erick Forero | Personal Finance
@raiseyourequity

👉 Your monthly income is $ 5,000 per month,

and your budget might look like this:

Monthly Rent $ 2,000

income: $ 5,000
Food $ 500
Bills $ 1,000
Clothing $ 250
Personal expenses $ 750
Investments $ 250
Emergency fund $ 250

Amount left: $0 $0
 Erick Forero | Personal Finance
@raiseyourequity

2. 50/30/20 Plan

The 50/30/20 budgeting method is a simpler

approach to managing your money.

It involves dividing your income into three categories:

50% for needs, 30% for wants, and 20% for savings
and financial future.

Let me show you an example:

 Erick Forero | Personal Finance
@raiseyourequity

💸 The chart: 👉 50% Goes to your needs

(Housing, transportation,
insurence, food, healthcare, etc).

30% 👉 30% Goes to your wants

(Takeout dinners, concert tickets,
fun tech gadgets, platform
50-30-20 50% suscriptions, cocktails with
friends, etc).

👉 20% Goes to your financial

future (Paying down debt,
building up savings, investments,
20%
etc).
 Erick Forero | Personal Finance
@raiseyourequity

Did you know about any of these

budgeting methods?

Let me know if you have any questions

or comments. 👇