360 : $44.86
A2M : $9.38
AFI : $7.33
AGL : $9.11
AIA : $6.92
ALD : $31.33
ALL : $63.96
ALQ : $22.27
ALX : $5.03
AMC : $12.96
ANN : $36.48
ANZ : $38.41
APE : $31.28
ARG : $9.24
ASX : $59.11
AZJ : $3.51
BEN : $12.38
BHP : $42.78
BSL : $22.27
BXB : $23.86
CAR : $34.28
CBA : $168.49
CDA : $34.11
CGF : $9.02
CMM : $14.28
COH : $286.26
COL : $22.42
CPU : $35.03
CSL : $181.22
CWY : $2.56
DNL : $3.44
DOW : $7.87
EBO : $24.49
EDV : $3.67
EVN : $11.47
FMG : $19.98
FPH : $32.81
GGP : $8.10
GMD : $6.36
HUB : $116.79
HVN : $7.54
IAG : $7.99
IFT : $10.79
JBH : $98.60
JHX : $26.00
LNW : $138.21
LYC : $14.56
MCY : $5.65
MEZ : $5.13
MIN : $46.19
MPL : $5.03
MQG : $209.65
NAB : $42.91
NEM : $135.83
NST : $26.39
NWL : $30.58
NXT : $15.14
ORG : $12.00
ORI : $23.02
PLS : $3.38
PME : $254.54
PRU : $5.24
QAN : $9.75
QBE : $20.27
QUB : $4.40
REA : $208.32
REH : $11.12
RHC : $30.94
RIO : $131.10
RMD : $38.47
RMS : $3.66
RRL : $6.91
S32 : $3.21
SDF : $5.46
SEK : $26.06
SFR : $16.31
SGH : $45.12
SHL : $21.41
SIG : $3.15
SOL : $38.07
STO : $6.52
SUN : $19.72
TLC : $5.49
TLS : $5.12
TLX : $15.65
TNE : $36.27
TPG : $5.78
TWE : $5.81
VAU : $0.76
VNT : $5.78
WBC : $40.03
WDS : $26.40
WES : $81.66
WGX : $5.81
WHC : $7.34
WOR : $14.05
WOW : $28.36
WTC : $70.33
XRO : $142.00
YAL : $5.85

How to budget using the 50/30/20 method

This is a great strategy for anyone who wants an easy and structured budgeting method.

.

To achieve our financial goals, we need to know where our money is going. This is why having a budget is so important.

What’s even more important is to find a budget that matches your personality.

The 50/30/20 budget method is ideal for people who like tracking expenses and want to follow a guideline.

Although it’s called the 50/30/20 method, you can change the percentages so they work for you.

Here’s how it works:

Think of your money as going into three different buckets.

Bucket number one is for your needs. 50% of your take-home pay goes towards your essential expenses like housing, groceries, transportation, utilities and other general expenses. Try your best to keep your needs to around 50% of your budget.

Bucket number two is for your wants. 30% of your money should go towards travel, subscriptions, and discretionary things like dining out with your family and friends. Try to keep your wants to 30% of your budget.

Finally, bucket number three is for your savings and also for paying down debt. This remaining 20% of your money can go towards an emergency fund, investing for retirement, paying down loans, or really any other financial goals you may have.

So, 50% for your needs, 30% for your wants, and 20% for your savings. That’s the 50/30/20 budget.

Most importantly, feel free to personalise it! 50/30/20 is just a guide.

You can vary the percentages and create a plan that works with your income and your obligations.

You might just be starting your savings journey … and 20% may seem unattainable. Or maybe you can save more than 20%, and that's also great. What matters is that it needs to work for you.

The bottom line

The 50/30/20 method is a solid strategy for you to organise your cash flow.

You make progress towards your goals with your savings, but also enjoy the journey with your wants.

 

 

 

 

Vanguard
October 2023
vanguard.com.au