Discipline often comes with rules, and no one likes a rule do they? But! And I say “but” with value to bring… Any extra cash we can tuck away strategically is worth tucking away right?

No one want’s to stress about money, and research from NAB has found 40% of Australians have experienced some form of financial stress or hardship in the past three months.

But I’ve good news for you! There’s a strategy that financial experts are saying changes the game…

I present to you, the “50/30/20” budgeting rule!

How does it work? It starts by living within your means! What does “living within your means,” well, mean?

According to the rule, 50% of your net (after tax) income should go towards your NEEDS and your BILLS. If more of your income is going towards those things, find a way to cut expenses.

THEN, 30% should go towards things you enjoy, this could be a gym membership, going to the movies, paying for a class, or even having a coffee with friends! (You’ve got to enjoy life too right?)

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And finally, 20% should go towards your savings, or your current debts and should NOT be touched.

Does this sound good? It should. Because if you have extra savings, or a plan, you won’t have to be stressing every time rent comes around!

Lets explore what this might look like; 

If you earn $1,500 a fortnight, every time you get paid you split your income like this:

$750 covers your rent for the fortnight (50%)

$450 allows you to go out and enjoy yourself (30%)

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$300 is put away in savings (20%)

Now, let me be real with you if you have a family…

You’re AMAZING for having one. You are doing an incredible thing and raising the next generations of strong Australians!

So be kind to yourself, and also, own the fact that’s YOUR investment into the economy. BUT it doesn’t mean you can’t find means to save some more…

So, keeping in mind raising a family is a BAD ARSE thing to do, here are some ways to cut costs:

  1. Focus on food costs. (How can we make it cheaper? Is there a market that sells a lettuce for 99c each as oppose to a $1.50; you get the idea!)
  2. Keep birthdays simple. (You don’t have to “keep up with the Jones'” and host birthdays worth hundreds of dollars. A homemade cake, a candle, and some friends coming over to kick a footy could work just as well!)
  3. Give secondhand a chance. (Look, I own 5 pairs of clothes and 2 pairs of sneakers. That’s it. And it’s okay! I have some great hand me downs, and in this sustainability focuses world, you’ll likely get compliments!)
  4. Choose frugal fun. (The park, a hike or a beach day is nothing to sneeze at, and you might even enjoy each others company more!)
  5. Plan ahead for the holidays. (You’re allowed to go on a holiday, but don’t do it if you can’t afford it. But, that doesn’t mean you can’t save up for it! You could even make it a family goal? You’ll probably end up appreciating it more!)
  6. Hack your housing costs. (Who gives a cheaper deal on bills? How much water are we using? Do we NEED that high speed internet the kind bloke on the phone sold to us?)
  7. Talk budgeting and saving with your kids. (Be open about it with your kids. Don’t be ashamed of talking about. It’s life. And they’ll become more savvy if it’s a family conversation.)
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