360 : $23.97
A2M : $6.83
AFI : $6.84
AGL : $8.23
AIA : $7.32
ALD : $39.80
ALL : $65.02
ALQ : $23.45
ALX : $4.97
AMC : $66.52
AMP : $2.35
ANZ : $36.70
APE : $24.34
ARG : $9.46
ASX : $57.25
AZJ : $4.22
BEN : $11.18
BHP : $64.05
BRG : $34.58
BSL : $34.71
BXB : $20.24
CAR : $29.14
CBA : $173.89
CDA : $40.75
CGF : $9.85
CMM : $16.20
COH : $129.77
COL : $23.57
CPU : $42.28
CSL : $138.40
CWY : $2.35
DNL : $3.88
DOW : $7.76
EDV : $3.58
EVN : $13.76
FMG : $18.03
FPH : $35.70
GGP : $12.53
GMD : $7.41
HUB : $89.91
HVN : $4.98
IAG : $7.98
IFT : $12.77
IGO : $7.82
JBH : $83.27
JHX : $43.17
LNW : $129.98
LYC : $16.86
MCY : $5.48
MEZ : $4.65
MIN : $65.55
MPL : $5.20
MQG : $264.12
NAB : $41.24
NEM : $165.12
NST : $22.81
NWL : $24.76
NXT : $14.50
ORG : $10.91
ORI : $23.19
PLS : $4.69
PME : $182.50
PRU : $5.65
QAN : $10.16
QBE : $23.67
REA : $177.34
REH : $17.21
RHC : $45.26
RIO : $179.38
RMD : $31.30
RMS : $3.67
RRL : $7.47
S32 : $5.12
SDF : $5.26
SEK : $16.18
SFR : $21.38
SGH : $41.77
SGM : $26.37
SHL : $22.62
SIG : $2.97
SOL : $46.97
STO : $8.05
SUN : $18.45
TLC : $5.44
TLS : $4.99
TLX : $16.95
TNE : $33.14
TPG : $3.60
VAU : $6.09
VNT : $6.01
WBC : $35.78
WDS : $33.00
WES : $89.52
WGX : $5.85
WHC : $7.72
WOR : $10.99
WOW : $40.00
WTC : $40.94
XRO : $78.92
YAL : $5.92

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