360 : $25.43
A2M : $6.98
AFI : $6.91
AGL : $8.02
AIA : $7.30
ALD : $36.26
ALL : $61.38
ALQ : $22.34
ALX : $5.03
AMC : $62.06
ANZ : $36.21
APE : $20.52
ARG : $8.98
ASX : $54.39
AZJ : $4.16
BEN : $10.64
BHP : $57.96
BRG : $31.31
BSL : $32.06
BXB : $18.69
CAR : $26.09
CBA : $169.03
CDA : $42.91
CGF : $10.45
CMM : $12.79
COH : $122.63
COL : $23.17
CPU : $39.63
CSL : $121.11
CWY : $2.29
DNL : $3.67
DOW : $7.82
EDV : $3.46
EVN : $11.37
FMG : $18.68
FPH : $33.59
GGP : $10.71
GMD : $5.81
HUB : $82.62
HVN : $4.73
IAG : $8.30
IFT : $12.89
IGO : $6.56
JBH : $79.01
JHX : $35.30
LNW : $103.49
LTR : $1.40
LYC : $16.03
MCY : $5.68
MEZ : $4.70
MIN : $57.26
MP1 : $19.98
MPL : $5.09
MQG : $253.73
NAB : $39.69
NEM : $134.75
NST : $19.90
NWL : $24.04
NXT : $13.66
ORG : $10.15
ORI : $23.48
PLS : $4.48
PME : $198.50
PRU : $4.83
QAN : $10.42
QBE : $25.40
REA : $149.95
REH : $15.68
RHC : $42.19
RIO : $163.18
RMD : $28.25
RMS : $2.94
RRL : $6.47
S32 : $3.94
SDF : $5.17
SEK : $13.22
SFR : $18.17
SGH : $44.14
SGM : $25.37
SHL : $20.82
SIG : $2.92
SOL : $43.90
STO : $7.65
SUN : $18.78
TLC : $5.53
TLS : $4.98
TLX : $16.12
TNE : $30.57
TPG : $3.61
VAU : $4.88
VNT : $5.94
WBC : $36.62
WDS : $29.33
WES : $90.80
WHC : $7.45
WOR : $10.59
WOW : $39.73
WTC : $33.23
XRO : $70.91
YAL : $5.42

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