You have heard of the 50-30-20 budget plan and its nice and all, but our After 50-30-20 is designed to win in nearly any financial situation.
Simply Put:
The main difference is the “After” piece that makes our budget unique.
After the bills have been paid for the month, or atleast the money has been set aside, then you get into the 50-30-20 process. The After also should include food and sustenance cost. Gotta eat. It is better to meal plan if you are in a bind.
50:
Normally they say put 50% to your needs, but we normally this means bills and other immediate cost that are needed. Since you have taken care of the bills, you can put this 50% to pay off your biggest debt. It sounds crazy… But imagine the following:
Income after taxes: $2000
Bills: $1000($200 towards car loan)
Remaining money: $1000
Car payment (biggest debt): $15000
The normal time to repay loan: at $200 a month it’s roughly 75 months. APR is not important here.
Using the After 50-30-20: at $700 a month it’s roughly 21 months.
After that, you own the car and gain an extra $200 back despite any raises or bonuses!
That’s what this budget is about.
30:
This amount is meant to be invested, saved, or tucked away in a safe place. Try you best not to spend any of it. This nest egg will grow and you will be tempted so be careful. It’s tempting to spend this money, but be very wary of spending it or atleast follow the HNTSS!
20:
This is your money and your cut so do what you want. If you are really about the savings, take food money out of this rather than the After. Fast food is tempting but don’t waste it here.
Simple conclusion:
The After 50-30-20 budget is for everyone and will help you save money, by not spending it incorrectly. Be cautious about your financial situation and soon enough you’ll be blogging about paying all your debt off in half the time. It really is as simple as being disciplined.
What has been your best trick to Budgeting? We have heard of people putting paper notes in their wallets? Is that practical?
Simple Money 