Budgeting made easy on Trackfundx

The first time you heard about budgeting might have been in relation to an accounting course in school, an allocation by the government, or a renovation pitch by a big organization. As grand as the word used to sound, it has become part of our everyday life, especially with increased consciousness around financial security and unending inflation. It’s not uncommon to ask a friend, what is the budget for your wedding or for a boys’ night out and the like.

One might ask, is the budgeting for personal finance different from what you’ll find in a government contract. While a few more terminologies might be added on when referring to the latter, the basics of budgeting are the same. It is simply the process of creating a plan on how to spend money.

Dave Ramsey described it as, “Telling your money where to go and not wondering where it went”

Budgeting is important because it helps you make better financial decisions, control your spending, track your expenses and save your money.

How to budget your money

We recommend the simple 50/30/20 framework.

50% – For needs – This includes:

Sometimes, your needs might overshoot 50% so you might have to dip into the cut for wants.

30% – For wants – This includes:

20% – Savings and loan repayment

You will also have to prioritize your savings, as we have different things we need to save for at different times. The hack is to categorize into short-term and long-term savings. The short term could be saving for a college degree and the long term could be retirement or buying a home.

Trackfundx can help

As simple as this may look, it might be tricky in implementing. This is why recommend the Trackfundx App. A personal finance app that can help you manage your income and spending in one place. With the app, you’re able to create categories and follow this framework to the latter.

Get the Trackfundx app here to stay in control of your money.