There's no such thing as a one size fits all budget, we all like to handle our money in different ways and I actually think there is a budget out there that can fit each of us.
So let’s talk about the 50-30-20 budget. This is a budget for those who really don't know where to start or have failed at creating and successfully sticking to a budget in the past. With this budget style, you divide your paycheck up into three specific budget categories, needs, wants, and savings. And each of these categories is assigned a percentage, 50 percent to needs, 30 percent to wants, and 20 percent to savings.
Let’s start with the first and largest category, needs. No more than 50 percent of your income goes to the things that you need and have to pay for each month. So, this would include things like your mortgage or rent, food, specifically groceries, utilities, and car payments, those types of things.
30 percent of your income would be put toward things that you want and enjoy. This would be things like eating out, going on vacation, or even just a nice cup of coffee. The last 20 percent goes towards savings and this would include both your short term and long term goals. So, if you've never been quite able to stick to a budget, give the 50-30-20 budget a try.