What's the best way to budget?

[Guvnor]

Not sure if the place to ask this but here goes. I got a big year ahead of me, I wanna save up for a car and my own spot for the first time.

I thought about doing away with a savings account to bypass all the rules and using two checking accounts, one for wants and one for needs as well as a Markus high interest saving account. Though there is a lot to consider here.

Do you guys believe in the 50-30-20 rule? If not what are other ways that I can budget some long term investing, savings, money for wants as well as needs and also vacations?

Also as far as long term investing should I do a 401k plan or an IRA?

 

[Serious]

Look at all the expenses over the period of a few months and see what you can cut.

if you eat out a lot start cooking.
If you mainly cook then look even closer question if you really need everything your a about to cop.

Also helps me, is just automatically redirecting certain funds to certain accounts, when direct deposit hits.


I do it by percentage.


Also consider wants vs needs. You don’t really need that much to get by.


I personally don’t have a saving. I through it In my investment account. I have certain index funds that are my savings

 

[ℒℴѵℯJay ELECTUA]

Learn the art of selfishness.

 

[Macallik86]

Automate as much as possible. I am conscious of what I spend because I never have a lot of money in my bank account. This isn't because I'm broke, but because most of my paycheck is automatically moved to my investment accounts.

It's easy to be disciplined when an automated system makes it harder for you to screw up

 

[Responsible Allen Iverson]

You Need A Budget (YNAB)

 

[Controversy]

I budget 90% of my take home pay

Within that 90%, that includes all of my fixed and variable expenses, savings & investments

The remaining 10% is just in case something wacky happens...and if nothing wacky happens, I allocate it toward savings & investments

The key is not to live beyond your means, track every penny that comes in & goes out, and being disciplined

My net worth has exploded the past 10 yrs following this blueprint