Master Money Magic Establishing a Budget Changes Everything
Real-World Impact
According to a study by the National Foundation for Credit Counseling, only 39% of adults have a budget and keep close track of their spending1. However, those who do often report less financial stress and greater savings. For instance, the 50/30/20 rule, which allocates 50% of income to needs, 30% to wants, and 20% to savings and debt repayment, has been shown to effectively balance spending and saving2.
Opportunities for Savings
Budgeting opens up numerous opportunities for savings. By identifying unnecessary expenses, you can redirect funds toward an emergency fund or retirement savings. Many people find that simply being aware of their spending habits leads to more mindful purchases. Additionally, numerous financial institutions offer incentives, such as reduced fees or higher interest rates, for customers who maintain a budget and demonstrate financial responsibility3. Visit websites of banks and credit unions to explore these options.