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The 50/30/20 Budget – what it is and why it works.

The 50/30/20 budget is a simple and easy-to-follow budgeting method that can help you manage your money and achieve your financial goals. Under this budgeting method, 50% of your income is allocated towards essentials like housing, food, and transportation, 30% is allocated towards discretionary spending, and 20% is saved or invested. 

This budgeting method is a good choice for people who are new to budgeting or have a limited amount of time to devote to budgeting. It provides a clear guideline for how much should be allocated towards essentials, discretionary spending, and savings/investments. However, it may not be suitable for people with irregular or high income, as it does not take into account specific income and expenses. It may also be difficult for some people to allocate 50% of their income towards essentials, especially if they have high housing or childcare costs. 

To use the 50/30/20 budget, start by calculating your monthly income and expenses. Then, allocate 50% of your income towards essentials, 30% towards discretionary spending, and 20% towards savings/investments. Review your budget regularly to make sure you are staying on track and making progress towards your financial goals.

The commentary on this website reflects the personal opinions, viewpoints and analyses of the Ascend Investment Partners employees providing such comments, and should not be regarded as a description of advisory services provided by Kesler, Norman & Wride, LLC dba Ascend Investment Partners or performance returns of any Ascend Investment Partners Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Ascend Investment Partners manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. 

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