360 : $55.41
A2M : $8.87
AFI : $7.17
AGL : $9.10
AIA : $7.03
ALD : $29.97
ALL : $70.59
ALQ : $21.19
ALX : $4.88
AMC : $12.45
ANN : $32.48
ANZ : $34.16
APE : $33.18
ARG : $9.30
ASX : $59.01
AZJ : $3.27
BEN : $13.20
BHP : $42.11
BOQ : $7.32
BSL : $22.76
BXB : $24.80
CAR : $38.23
CBA : $170.54
CDA : $31.11
CGF : $8.69
CMM : $13.47
COH : $283.46
COL : $23.10
CPU : $36.40
CSL : $207.42
CWY : $2.92
DNL : $3.25
DOW : $7.57
EBO : $26.52
EDV : $3.63
EVN : $10.94
FMG : $19.29
FPH : $33.31
GGP : $7.43
GMD : $6.15
GQG : $1.73
HUB : $102.75
HVN : $7.65
IAG : $8.25
IFT : $11.12
JBH : $118.98
JHX : $30.02
LYC : $18.11
MCY : $5.82
MEZ : $5.18
MIN : $40.59
MPL : $4.82
MQG : $224.25
NAB : $44.49
NEM : $130.41
NST : $24.46
NWL : $30.31
NXT : $16.92
ORG : $12.27
ORI : $21.45
PLS : $2.54
PME : $312.18
PRU : $4.91
QAN : $10.85
QBE : $20.87
QUB : $4.20
REA : $231.10
REH : $11.31
RHC : $32.10
RIO : $125.31
RMD : $42.06
RMS : $4.00
S32 : $2.81
SDF : $6.04
SEK : $28.48
SFR : $14.98
SGH : $50.59
SHL : $21.64
SIG : $2.99
SOL : $39.11
STO : $6.68
SUN : $20.38
TLC : $5.77
TLS : $4.86
TLX : $15.42
TNE : $39.21
TPG : $5.16
TWE : $7.08
WBC : $39.23
WDS : $23.03
WES : $91.53
WGX : $5.52
WHC : $6.65
WOR : $14.15
WOW : $26.61
WTC : $90.30
XRO : $160.25
XYZ : $117.20
YAL : $5.27
ZIP : $4.77

How to budget using the 50/30/20 method

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

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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