A2M : $6.92
AFI : $6.71
AGL : $8.40
AIA : $6.65
ALD : $42.21
ALL : $61.37
ALQ : $20.76
ALX : $4.41
AMC : $59.29
AMP : $2.48
ANN : $41.44
ANZ : $37.17
APE : $19.79
ARG : $9.12
ASX : $53.42
AZJ : $3.73
BEN : $10.26
BHP : $59.13
BSL : $29.34
BXB : $18.75
CAR : $23.91
CBA : $152.50
CDA : $45.38
CGF : $10.29
CMM : $14.86
COH : $135.64
COL : $23.73
CPU : $39.96
CSL : $174.27
CWY : $2.68
DNL : $3.86
EDV : $3.11
EVN : $13.10
FMG : $16.26
FPH : $35.06
GGP : $10.45
GMD : $7.34
HUB : $70.05
HVN : $4.21
IAG : $8.25
IFT : $10.94
IGO : $7.10
JBH : $67.20
JHX : $39.42
LNW : $122.81
LYC : $13.89
MCY : $5.35
MEZ : $4.25
MIN : $54.26
MPL : $4.70
MQG : $238.28
NAB : $38.20
NEM : $170.69
NHC : $6.51
NST : $22.07
NWL : $18.74
NXT : $11.20
ORG : $11.77
ORI : $21.87
PDI : $4.62
PLS : $4.25
PME : $165.67
PRU : $6.32
QAN : $8.86
QBE : $23.12
REA : $157.18
REH : $16.53
RHC : $53.49
RIO : $164.35
RMD : $31.31
RMS : $3.61
RRL : $7.51
S32 : $4.88
SDF : $5.73
SFR : $20.63
SGH : $36.48
SGM : $23.92
SHL : $19.29
SIG : $2.65
SOL : $43.69
STO : $8.55
SUN : $19.78
TLC : $4.84
TLS : $4.84
TLX : $17.70
TNE : $28.56
TPG : $3.91
VAU : $6.09
VEA : $3.04
VNT : $5.78
WBC : $34.40
WDS : $32.48
WES : $72.46
WGX : $5.41
WHC : $8.35
WOR : $9.66
WOW : $38.90
WTC : $33.07
XRO : $67.53
YAL : $6.17

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