One challenge you will face when budgeting is determining how much of your income to spend in different categories. Percentage-based budget rules, like the 50/30/20 rule or the 70/20/10 rule, are useful strategies that can guide your spending and help you organize a better budget. WalletHub tapped Poole professor Christina Lewellen to share some tips for strategically allocating your spending using percentage-based goals.
“I think for people with lower income thresholds and/or tight budgets that do not have as much access to credit, budgeting and saving is crucial,” she said. “That way you have money saved if an unexpected expense comes up.”
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