How to Create a Percentage Budget
Now that your career is taking off and you’re racking up your FanCentro earnings, it’s time to break down your finances to create the optimal budget. One of the best ways to achieve this is by creating a percentage budget–basically a simple way to divide your FanCentro earnings like a pie…each percentage is allocated to a different expense to help you maximize the amount that stays in your pocket.
What is a Percentage Budget?
A percentage budget is an easy way to manage your income and expenses so there are no surprises when it comes to money. There are many different ways to create a percentage budget, and we’re going to give you a simple example of how to do it successfully.
The 50/20/30 Budget
While you can get as complex as necessary when it comes to managing your finances, we’re going to keep it simple. The 50/20/30 is one of the easiest percentage budgets to follow.
50% for your needs:
When we say needs, we’re not talking about, “I need that new Gucci clutch,” but rather your basic human needs (still not talking about the clutch 🙂 Your needs should include things like food, utilities, shelter, bills, insurance, transportation, and any debts you are paying down. You can further break down this category, but in general 50% of your FanCentro earnings should be applied to these necessities.
20% for your savings:
Even if things are tight, it’s important to allocate a certain percentage of your income for a rainy day. This 20% should go toward long-term savings and remain as untouched as possible…believe me, one day you’re going to be glad you made the 20% sacrifice!
30% for your wants:
Here’s where the Gucci clutch comes in! By allowing yourself 30% of your income for things that you want (entertainment, personal care, and anything else that feels like a splurge) you’ll never feel like you’re working for nothing. While the “Wants” column might feel like an incidental part of your budgeting, giving yourself 30% of your FanCentro income is perfectly fine as long as you are fulfilling the other parts of the deal (needs and savings).
Getting your finances in order isn’t a lot of fun, but fortunately it can be a painless procedure with just a few simple steps. The 50/20/30 example is a great jumping off point, but feel free to apply the same principle to each section of your pie. For example you can break that 50% portion down to account for your personal needs — if you don’t drive a car you can allocate a larger portion to another area.
So grab a cup of coffee, sit down with your FanCentro income information and start divvying it up! Then reward yourself by figuring out how much of the 30% “Wants” category can go toward that clutch!
What’s next?
Want to increase your FanCentro income? Check out Centro University for amazing tips and tricks or contact a personal success coach by emailing success@fancentro.com
