BY Pixels.com
Intro:
In this article, you will learn the top 10 best Budgeting tips for middle-class Americans, the 50/30/20 rule, the Zero-Based rule, long-term financial goals (with realistic examples, tools that will help you in this journey, and a quick checklist you can use today.
Before starting this, we have to understand what exactly Budgeting is, and what exactly the middle class is.
Many researchers say that if your annual salary is between 50,000$ to 150,000$, if it's only for you, then it's pretty good, but if you have a family of 5, then you belong to the middle class. According to Federal Reserve data, Americans have only a few months of funds for emergencies. Budgeting feels free and will give you opportunities. Let’s start it.
Point No. 1:
Know exactly what you earn per month (After taxes) and keep an eye on what you spend.
 |
| By Pixels |
Page 2 Point No. 2 – Track Everything for 1 Month For 30 days:
Track every swipe tap, see which is my need and which is a waste of money. My Personal Opinion is if you want to buy any product, wait for one month. After one month, I think that the product is still essential for me. Believe me, that thing was a waste of money (99%).
Second tip is if you go to a Grocery store or purchase online, my personal opinion is to take a bigger size, which has a lower price. For example, if you are buying Ketchup, Ketchup price is between small 2$, medium 5$, and large 6$; choose large. Its just an example.
If Grocery store or you need product is nearly to your house like (2–5KM) , my opinion is go on your own feet, not purchase online. The benefits are that your health and stamina will be boosted, delivery cost will be cut.
Point No. 3: Pick a budgeting method that fits your personality.
 |
| By Pixels.com |
If you are a student, professional, or senior citizen, choose a method that perfectly fits your personality. Use this method for 90 Days: 50/30/20 rule → 50% for needs, 30% for wants, and 20% for savings/Debt.
My Personal opinion is that if you are in debt, do not start saving or investing. First, finish your debt, then start saving or investing. Next Rule is Zero-Based Rule (Choose one). In this rule, every dollar has a job. Best for savings and cutting extra expenses.
My recommendation is to use the 50/30/20 rule. In every portion, like needs, wants, and savings, use the zero-based rule for cutting extra expenses.
Point No. 4 – Build a Practical Emergency Fund
For example: Save 1000$ per month and transfer your emergency fund account! If you want to start anything, start with small steps, like say to yourself, I will save 30$ per day, daily basis, send it to your digital account. Make a 2-year or 6-month goal.
Point No. 5 – Tame high-interest debt first
Its meaning is to pay high-interest debt first. My recommendation is not to get loans from banks, take loans to your friends in an emergency. No stress from high debt interest if you are saving money.
Point No. 6: Automate Savings and Bills
If you can save money, then open an emergency fund account. Automate your savings — like if you can save $1000 per month, send it to your emergency fund account. My recommendation is to send on a per-day plan, not per month.
 |
| By Pixels.com |
The best way to generate a daily habit is to. If you saved $30 today, send it now. And if you saved $40 or $50 on the next day, send it — not $30. Best for habit-generating. Believe me, you will love it when you see your big amount in the savings account.
Point No. 7: Trim the Waste Without Killing Joy
I already discussed in the above points — cut extra expenses like some things you want to buy for your current happiness, or buying after seeing trends. Don’t be stupid. You know the world is full of stupidity. Trend is a game for billionaires to extract more from us.
Point No. 8: Boost Income
If you have a skill, do freelancing. If you have no skill, ask your neighbors if they need some help. “I can help you” — do a car wash, or something that you can do. Do not be shy. Be confident. You are not begging — you are doing your job.
Point No. 9: Plan for Big Annual Expenses
Like for car repairs, holidays, or insurance premiums. Daily save $2–5 for your big annual expenses — the best plan for you.
Point No. 10: Review Quarterly
Adjust Yearly Change your plan after 6 months. Reason is, as we know inflation is rising, children are raising, so we have to change our plan — otherwise we will fall like Nokia.
Now the question is: What are the tools that will help us for budgeting, planning, and management?
Best tools for you are: YNAB, Mint, and EveryDollar. These are very popular, but my opinion is that Mint — reason is, best for tracking.
Conclusion:
So these are the 10 points and tools that will help you in the long-term to generate a wealth and freedom plan.If you enjoyed my work, then follow me on Twitter and share this with your friends and family members. It will be a great help from you. Make America Great Again