Building Your First Budget
Budgeting That Works · 15 min
Lesson
Completed
A budget just means giving every dollar of income a job before the month starts.
Start by listing fixed expenses (rent, insurance), then variable expenses (groceries, gas), then savings goals.
The 50/30/20 guideline suggests roughly 50% needs, 30% wants, 20% savings/debt payoff as a starting point.
Key takeaways
- Every dollar should have a job.
- List fixed, then variable expenses, then savings.
- 50/30/20 is a starting guideline, not a rule.
Glossary
- Fixed expense
- A cost that stays roughly the same each month, like rent.
- Variable expense
- A cost that changes month to month, like groceries.