Budgeting Basics

Build a plan for your money that aligns with your goals and prevents overspending.

50/30/20 Rule

Allocate income to needs (50%), wants (30%), and savings/debt (20%). Adjust based on your cost of living and goals.

Zero‑Based Budgeting

Assign every dollar a role—spending, saving, or investing—so your plan totals exactly your income.

Pay Yourself First

Automate transfers to savings and investments before you pay bills or spend on non‑essentials.

Emergency Funds

Keep 3–6 months of essentials in a liquid account. Increase to 9–12 months if income is variable or dependents rely on you.

Debt Management

Choose a payoff method—avalanche (highest APR first) or snowball (smallest balance first). Avoid new high‑interest debt.

Credit Scores & Reports

Pay on time, keep utilization under 30%, and maintain a diverse credit mix. Review reports annually for errors.

Saving Strategies

Use high‑yield savings for short‑term goals. Ladder CDs for predictable returns. Match timelines to risk tolerance.

Investing Foundations

Diversify across asset classes. Favor low‑cost index funds for broad exposure. Rebalance annually to maintain alignment.

Retirement Accounts

Prioritize employer match in a 401(k). Consider Roth vs Traditional based on current taxes vs expected future bracket.

Tax Planning

Use tax‑advantaged accounts, harvest losses strategically, and avoid short‑term capital gains when possible.

Insurance in Your Plan

Right‑size life, health, disability, auto, and home coverage to protect assets and income as your finances grow.

Goals, Tools, and Apps

Set SMART goals. Track with budgeting apps. Automate savings and monitor investments with secure, reputable tools.

FAQs

Aim for 15–20% total toward savings and investments. Increase when income rises or expenses fall.

Build a starter emergency fund, capture employer match, then prioritize high‑APR debt payoff.

Plan Confidently

Talk to a licensed specialist to integrate insurance and finance into one clear plan.