A2M : $7.78
AFI : $6.74
AGL : $9.61
AIA : $6.77
ALD : $33.13
ALL : $47.61
ALQ : $22.08
ALX : $4.29
AMC : $57.45
ANZ : $38.11
APE : $23.39
ARG : $8.83
ASX : $58.52
AZJ : $4.12
BEN : $11.19
BHP : $55.82
BOQ : $7.32
BSL : $28.33
BXB : $22.18
CAR : $23.99
CBA : $182.97
CDA : $33.56
CGF : $8.38
CMM : $12.06
COH : $173.43
COL : $22.68
CPU : $29.73
CSL : $139.54
CWY : $2.28
DNL : $3.21
DOW : $7.66
EDV : $3.23
EVN : $14.18
FMG : $20.73
FPH : $31.84
GGP : $15.12
GMD : $6.67
GQG : $1.73
HUB : $90.56
HVN : $4.64
IAG : $7.45
IFT : $9.96
IGO : $8.39
JBH : $74.25
JHX : $29.43
LNW : $123.99
LTR : $1.91
LYC : $20.86
MCY : $5.52
MEZ : $4.64
MIN : $58.41
MPL : $4.62
MQG : $233.84
NAB : $44.70
NEM : $166.36
NST : $24.54
NWL : $24.06
NXT : $13.37
ORG : $12.11
ORI : $20.81
PDN : $13.82
PLS : $5.34
PME : $137.95
PRU : $5.62
QAN : $9.15
QBE : $22.96
QUB : $5.00
REA : $161.09
REH : $14.11
RHC : $40.41
RIO : $174.66
RMD : $32.58
RMS : $4.01
RRL : $7.62
S32 : $4.63
SDF : $4.27
SEK : $14.42
SFR : $18.06
SGH : $41.56
SHL : $20.43
SIG : $2.70
SOL : $43.20
STO : $7.78
SUN : $16.57
TLC : $5.61
TLS : $5.41
TLX : $14.46
TNE : $29.13
TPG : $4.31
VAU : $4.63
WBC : $40.99
WDS : $33.01
WES : $74.53
WGX : $6.50
WHC : $8.43
WOR : $11.58
WOW : $36.87
WTC : $39.86
XRO : $75.53
YAL : $7.04

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