Financial Wellness • Mercer County, WV • 1 / 4

Budgeting: Know Where Your Money Goes • Mercer County, WV

A budget is a plan for your money that helps you see where your paycheck goes and cover what matters most.

The 50/30/20 Rule

• 50% for "Needs" like housing, food, utilities, transportation, and insurance that you must have to survive.
• 30% for "Wants" like dining out, entertainment, and hobbies that you enjoy and need sometimes but not all the time.
• 20% for "Savings and Debt Payoff." This includes things like keeping an emergency fund, saving for retirement, and paying down credit card debt.

• Life surprises happen. Saving up an emergency fund can help if something bad unexpectedly happens like losing a job, your car breaking, a loved one getting sick, or your home needing repairs.
• You should have about 3-6 months of expenses set aside for an emergency fund.

• The following are some examples of budgeting strategies, but every person has different preferences. Think about what works well for you, and try it out consistently for a while.
• Apps like Mint or EveryDollar link to your bank account and track purchases automatically, but you can also do this yourself using pen and paper or a spreadsheet.
• You can put cash in envelopes for different categories like groceries or entertainment. When the envelope is empty, you stop spending in that category.

• Track every dollar you spend for one week. Write it down. Then add it up by category. Does it match the 50/30/20 rule? Where can you adjust?