A2M : $8.94
AFI : $6.88
AGL : $10.51
AIA : $7.14
ALD : $28.71
ALL : $49.49
ALQ : $23.85
ALX : $4.57
AMC : $70.61
ANZ : $39.90
APE : $25.04
ARG : $9.04
ASX : $54.54
AZJ : $3.82
BEN : $11.27
BHP : $50.08
BOQ : $6.96
BRG : $32.43
BSL : $28.49
BXB : $23.63
CAR : $25.64
CBA : $177.33
CDA : $34.32
CGF : $8.41
CMM : $13.46
COH : $202.28
COL : $22.21
CPU : $31.38
CSL : $152.05
CWY : $2.39
DNL : $3.27
DOW : $7.74
EDV : $3.85
EVN : $15.43
FMG : $20.42
FPH : $31.19
GGP : $12.77
GMD : $7.42
GQG : $1.81
HUB : $80.32
HVN : $6.31
IAG : $6.84
IFT : $9.38
IGO : $8.17
JBH : $81.90
JHX : $36.46
LNW : $145.14
LTR : $1.67
LYC : $15.68
MCY : $5.22
MEZ : $4.77
MIN : $51.41
MPL : $4.50
MQG : $218.40
NAB : $45.60
NEM : $175.60
NST : $28.87
NWL : $21.93
NXT : $13.77
ORG : $11.76
ORI : $25.81
PDN : $11.80
PLS : $4.26
PME : $117.12
PRU : $5.80
QAN : $10.40
QBE : $19.61
QUB : $5.01
REA : $163.73
REH : $14.56
RHC : $37.08
RIO : $161.82
RMD : $35.10
RMS : $4.64
RRL : $8.38
S32 : $4.43
SDF : $4.24
SEK : $16.63
SFR : $18.94
SGH : $47.31
SHL : $21.52
SIG : $3.03
SOL : $37.43
STO : $6.72
SUN : $15.95
TLC : $5.16
TLS : $4.95
TNE : $21.20
TPG : $3.80
VAU : $5.53
WBC : $40.70
WDS : $25.88
WES : $88.93
WGX : $7.31
WHC : $8.57
WOR : $13.10
WOW : $32.01
WTC : $47.56
XRO : $78.96
YAL : $6.13

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