Is that case of craft brew a necessity, or a luxury? What about that additional streaming channel, those designer mud flaps, and that second set of socket wrenches? When making financial decisions and formulating a financial plan, it’s important to know the difference between what we need and what we want. When developing a budget, focus first on the needs – those things you have to have – while allowing for “wants” as well. Necessities should be 50% of your budget, according to the “50 (needs)/30 (wants)/20 (savings)” method – but you can still have that craft brew and fishing channel – just maybe not the mud flaps.
Advice from Nerdwallet on defining needs and wants
About that 50/30/20 budget method… from The Balance and also check out:
as well as…
Needs-vs-wants from Smart Asset
Help your kids learn this, too – like Elmo did on Sesame Street.
Free budgeting apps can help you make sounder financial decisions, plan, and manage:
Check out this free budget worksheet from Nerdwallet
Input your income and expenses, and we’ll show how your spending compares to the 50/30/20 budget.
YNAB (you need a budget) is another highly rated app (and currently has a free trial offer)
During times of trouble, it’s even more difficult to stay on top of things financially. We’re working to find good resources to help you navigate this journey. We’re keeping this page up to date with tips from financial professionals, links to articles, and videos. And, we’re offering webinars weekly on a variety of financial fitness topics, as well.
Check out these 5 tips for handling a financial crisis.
During times of crisis and market volatility like we are experiencing:
Your local United Way has developed Covid 19 Resource pages that include ways to get help and ways to give help in your county: