A2M : $6.92
AFI : $6.74
AGL : $8.33
AIA : $6.61
ALD : $43.35
ALL : $61.28
ALQ : $21.01
ALX : $4.42
AMC : $59.52
AMP : $2.50
ANN : $41.52
ANZ : $37.10
APE : $20.08
ARG : $9.19
ASX : $52.83
AZJ : $3.73
BEN : $10.28
BHP : $60.04
BSL : $30.22
BXB : $18.96
CAR : $23.91
CBA : $151.64
CDA : $48.66
CGF : $10.24
CMM : $14.78
COH : $137.00
COL : $23.45
CPU : $40.61
CSL : $173.95
CWY : $2.67
DNL : $3.87
EDV : $3.01
EMR : $6.85
EVN : $13.26
FMG : $16.50
FPH : $35.71
GGP : $10.68
GMD : $7.40
HUB : $70.15
HVN : $4.20
IAG : $8.03
IFT : $11.34
IGO : $7.04
JBH : $66.35
JHX : $37.43
LNW : $123.49
LYC : $13.86
MEZ : $4.31
MIN : $54.29
MPL : $4.61
MQG : $240.20
NAB : $37.97
NEM : $175.11
NHC : $6.45
NST : $22.15
NWL : $19.06
NXT : $11.35
ORG : $11.83
ORI : $22.27
PDI : $4.67
PLS : $4.27
PME : $164.94
PRU : $6.45
QAN : $8.74
QBE : $23.03
REA : $157.43
REH : $16.32
RHC : $54.57
RIO : $165.84
RMD : $31.98
RMS : $3.61
RRL : $7.65
S32 : $5.03
SDF : $5.73
SFR : $21.17
SGH : $36.81
SGM : $24.06
SHL : $19.47
SIG : $2.61
SOL : $43.96
STO : $8.76
SUN : $19.11
TLC : $4.83
TLS : $4.87
TLX : $16.90
TNE : $29.02
TPG : $3.91
VAU : $6.15
VEA : $3.13
VNT : $5.86
WBC : $34.39
WDS : $33.29
WES : $72.39
WGX : $5.52
WHC : $8.26
WOR : $9.79
WOW : $38.66
WTC : $32.20
XRO : $66.39
YAL : $6.11

How to budget using the 50/30/20 method

This is a great strategy for anyone who wants an easy and structured budgeting method.

.

To achieve our financial goals, we need to know where our money is going. This is why having a budget is so important.

What’s even more important is to find a budget that matches your personality.

The 50/30/20 budget method is ideal for people who like tracking expenses and want to follow a guideline.

Although it’s called the 50/30/20 method, you can change the percentages so they work for you.

Here’s how it works:

Think of your money as going into three different buckets.

Bucket number one is for your needs. 50% of your take-home pay goes towards your essential expenses like housing, groceries, transportation, utilities and other general expenses. Try your best to keep your needs to around 50% of your budget.

Bucket number two is for your wants. 30% of your money should go towards travel, subscriptions, and discretionary things like dining out with your family and friends. Try to keep your wants to 30% of your budget.

Finally, bucket number three is for your savings and also for paying down debt. This remaining 20% of your money can go towards an emergency fund, investing for retirement, paying down loans, or really any other financial goals you may have.

So, 50% for your needs, 30% for your wants, and 20% for your savings. That’s the 50/30/20 budget.

Most importantly, feel free to personalise it! 50/30/20 is just a guide.

You can vary the percentages and create a plan that works with your income and your obligations.

You might just be starting your savings journey … and 20% may seem unattainable. Or maybe you can save more than 20%, and that's also great. What matters is that it needs to work for you.

The bottom line

The 50/30/20 method is a solid strategy for you to organise your cash flow.

You make progress towards your goals with your savings, but also enjoy the journey with your wants.

 

 

 

 

Vanguard
October 2023
vanguard.com.au