Budgeting
What are fixed and variable expenses in a budget?
Fixed expenses are regular and predictable cost such as electricity bill, rent, while variable expenses fluctuate and are irregular in nature such as entertainment, medical care.
What is the 50/30/20 rule in budgeting?
The 50/30/20 rule suggests allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This guideline provides a simple framework for budgeting.
How to handle unexpected expenses in a budget?
Including a category for miscellaneous or emergency expenses in the budget will help to overcome the unexpected expenses in a budget.
How to save money within a budget?
Saving money within a budget involves identifying areas for cost-cutting, negotiating expenses, prioritizing needs over wants, and allocating a portion of income specifically to savings and investments.