Using a 50/30/20 method you’ll plan to spend or set aside your entire take-home pay so eventually, your planned cash flow will balance to $0.ĭo these steps for the Wants and Freedom groups to work out your 50/30/20 budget. From there start filling in the Needs categories and reference the Monthly Budget sheet to see what % of your budget is going towards the Needs group.Īs you’re setting budget amounts pay attention to the Planned Cash flow amount in the upper left of the Monthly Budget sheet to make sure your planned cash flow is positive. Start with your income categories to see how much you have to work with. Next, start setting the budget amounts for each category in column E on the Categories sheet. This helps organize things as you’re thinking about your needs, wants, and freedom budget amounts. Just hover over the column letter and click the small triangle to open the menu and then choose Sort A>Z. Once you’ve got a good list you can sort the Categories sheet by the group column. Note: We recommend keeping your budget categories simple. We recommend a “Transfers” group that uses the transfer type and an Earnings category that’s an income type category. You’ll also want a Transfer category and one or more income categories. 20% to FREEDOM: eliminating debt and building savings.30% to WANTS: entertainment, certain subscriptions, fun stuff!.50% to NEEDS: rent/mortgage, groceries, bills, transportation.To follow along with the 50/30/20 budgeting method use Needs, Wants, and Freedom (debt reduction and savings) for your groups.Īs you customize your categories, think about how they break out into these three main 50/30/20 groups: Each category should also be assigned to a group. Customize this list on the Categories sheet in the Foundation template.įeel free to clear away the example categories. Simple steps for creating a 50/30/20 budget in your Foundation Templateįirst, think about your Categories and how you spend and earn your money. Out of the box, the Foundation template can help you see what percentage of your expense budget is going to each group.
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