Budget
The Second Pillar of Financial Wellness.
Gives every dollar purpose and direction.
1) Emergency Savings Account
2) Budget
3) Debt
4) Insurance / Protection
5) Investment / Retirement
A Budget is a way to balance income, expenses and financial goals for a specific length of time.
In order to achieve a goal, you need to stick to a plan, and stay focused on a clearly defined process; and that’s where having a budget is so important.
Through a budget you can develop clearly defined financial goals along with a process to achieve them. In essence, you are setting boundaries on your financial behavior so that you can stay on track and achieve every goal you set for your life.
Asset Strategy’s 50/15/5/30 Rule
This is the budgeting rule we recommend, where you put 50% of your money toward your MUST HAVES / SHOULD HAVES, 15% toward your PRE-TAX INCOME FOR RETIREMENT, 5% toward your Emergency Savings Account (ESA), and the remaining 30% toward your COULD HAVES / WANTS.
Each category is shown per paycheck, per month, and per year. The row that matches your selected view is highlighted.
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Embark on your journey towards financial wellness by mastering the art of budgeting. Navigate your expenses with precision, ensuring every dollar has a purpose.
A breakdown of your budget can:
- Help you control your spending
- Keep you on track for your financial goals
- Keep you from feeling financially overwhelmed
- Help you prepare for unexpected expenses (ESA)
- Help you avoid or get out of debt
- Keep you organized
- Help you find financial contentment
And don’t forget! Life is all about celebrating the small wins, so if you fall off the wagon, refocus your efforts, be mindful, and get back on track.