Andre and Phil talk about how to get started with a budget.
Andre discussing using Elizabeth Warren’s Balanced Money Plan (or 50/30/20 method)
- 50% goes to your needs (Rent, Electric, etc)
- 30% goes to your wants (Clothing, Movies)
- 20% goes to Savings
Look at what you’ve spent for the past couple months and figure out where you are CURRENTLY, and see how you can fit it into a sustainable budget.
What about irregular (quarterly bills)? Multiply a single bill by four, and divide by 12, setting aside that much money every month, for example, you have a quarterly insurance bill that is $300 every 3 months. So first multiple that number by four ($1200), then divide by 12 ($100), and that’s the amount you should budget for every month for that bill.