A2M : $6.89
AFI : $6.68
AGL : $8.53
AIA : $6.86
ALD : $32.85
ALL : $57.98
ALQ : $22.70
ALX : $5.10
AMC : $58.48
ANZ : $35.63
APE : $21.68
ARG : $9.01
ASX : $51.55
AZJ : $4.17
BEN : $10.61
BHP : $59.67
BSL : $32.72
BXB : $19.12
CAR : $26.27
CBA : $164.38
CDA : $43.73
CGF : $9.84
CMM : $12.60
COH : $112.90
COL : $23.70
CPU : $37.13
CSL : $115.21
CWY : $2.35
DNL : $3.86
DOW : $8.11
EDV : $3.28
EVN : $12.35
FMG : $19.20
FPH : $30.60
GGP : $12.80
GMD : $5.56
HUB : $73.76
HVN : $4.76
IAG : $7.89
IFT : $12.39
IGO : $7.91
JBH : $78.19
JHX : $35.13
LNW : $118.51
LTR : $1.90
LYC : $19.41
MCY : $5.45
MEZ : $4.78
MIN : $65.97
MPL : $4.88
MQG : $250.28
NAB : $38.74
NEM : $138.79
NHC : $5.41
NST : $20.62
NWL : $20.32
NXT : $14.90
ORG : $10.84
ORI : $23.10
PDI : $0.83
PLS : $5.68
PME : $179.76
PRU : $5.17
QAN : $10.31
QBE : $24.59
QUB : $5.10
REA : $131.94
REH : $15.67
RHC : $41.06
RIO : $173.26
RMD : $27.89
RMS : $2.99
RRL : $6.63
S32 : $4.05
SDF : $5.00
SFR : $19.65
SGH : $44.94
SGM : $28.14
SHL : $19.81
SIG : $2.74
SOL : $45.48
STO : $7.21
SUN : $18.89
TLC : $5.55
TLS : $5.09
TLX : $15.65
TNE : $28.28
TPG : $3.70
VAU : $4.62
VNT : $6.69
WBC : $35.72
WDS : $28.15
WES : $87.19
WGX : $4.91
WHC : $8.24
WOR : $12.27
WOW : $39.26
WTC : $32.86
XRO : $70.73
YAL : $5.74

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