Feature Image by Marten Bjork
Creating a budget, not to mention, sticking to a budget isn’t easy. But luckily, there are a few things you can do to be better at managing your finances.
We chatted with Brittney Castro, founder and CEO of Financially Wise Inc., about how to budget (without sacrificing your daily iced coffee and avocado toast). Check out her expert tips below:
Educate yourself
Finances can be intimidating, but that’s just because you probably don’t know enough about it. “Just like any subject, once you start learning about money and finance it’s really not that scary,” says Castro.
Follow the 50-20-30 rule
The 50-20-30 rule refers to how you should spend your net income (how much money you make after taxes and deductions) each month. This pattern means that 50 percent of your net income goes to fixed expenses, such as rent, utilities, or health insurance, 20 percent goes toward various savings goals like travel and retirement, and 30 percent goes to fun (yes, fun!). Castro encourages you to use this 30 percent only towards the things that truly bring you joy and satisfaction.
Create clarity
If you’re planning for bigger life events like a wedding or moving to a new house, it’s important to map out exactly how much it’s going to cost and where that money is going to come from. Set a goal and determine the best financial plan to help you reach it. “Having clarity around the target is always the first place to start,” says Castro.
Want to learn even more? Check out Castro’s FabFitFun Live segment below for more tips.
xx, The FabFitFun Team
