Allegacy Financial Centers will close in observance of the Thanksgiving holiday Thursday, November 22nd – Friday, November 23rd. Our Contact Center and Greensboro Battleground, Kernersville, North Patterson and Westbrook Financial Centers will be open Saturday, November 24 from 9:00 am 12:00 pm to assist with your financial needs.
Finally, you have a paycheck and you can spend it any way you want. But wait! There are bills to pay. Taking that first leap into adulthood is exciting and scary at the same time, but with this simple budget guideline, you’ll stay on track by planning ahead and spending your money on the things you should. The 50/20/30 rule is easy to follow and can help you keep track of your spending while also making sure you’re putting money aside for savings. Whether you’re just starting out or have struggled with keeping a budget for a while, these fundamental principles will get you on the right track.
Before you get started, make sure you know how much money you have each month. Look at your paycheck and determine your income. Then it’s time to split it up.
50% of Your Income – Essentials
Take your monthly income and determine how much is 50%. Once you have that number, look at your essential expenses. These expenses include housing, food, transportation costs, utility bills – anything you’d have to pay no matter where you live or work. This could also include items that you feel are necessities.
20% of Your Income – Savings
Next take your total monthly income and determine 20%. Once you’ve taken care of the essentials, it’s time to dedicate 20 percent of your take-home pay toward savings. This includes 401K and other savings plans, debts that you need to pay off (such as credit cards) and emergency funds. Paying off those debts might not sound like saving, but once you pay off other debts, add those payment amounts to your savings and you will soon see your savings grow.
30% of Your Income – Personal
These are entirely optional expenses that you decide whether you want the benefit they provide or not. There is a variety of expenses in this category from your cell phone bill with unlimited data to eating out at lunch or going to the movies with friends. This category is one of the most flexible because it all depends on your interests and what you have to have.
Establishing good habits now will help you as your income grows and because it’s a percentage based system, it will be easy to adjust along with your paycheck. Though the 50/20/30 is an easy guideline, you’ll want to take a close look at what you consider essentials and what is simply a personal expense.
At Allegacy, we will be happy to help you set up a budget and an automatic transfer to your savings account to help you stay on track. Visit AllegacyFCU.org to learn how we can help.
The information contained above is for informational purposes only and is provided as a service to our members, and is not legal or tax advice.
Some links included on this page route to sites owned by an independent third party unaffiliated with Allegacy. Such links are provided only as a convenience. Allegacy does not manage the operation or content of third-party websites and is not responsible for the privacy or security policies on third-party sites. Beware of disclosing personal or account information.
You are now leaving the Allegacy Federal Credit Union website. The Credit Union does not operate this alternate site to which you are linking and is not responsible for the content of the website nor any transactions performed on this website. Privacy and security policies may differ from those practiced by the Credit Union.