On January 5, 2023 Dallas SWE hosted a Budget Planning Workshop at Haistings Real Estate Group in Plano, TX.
Ana Gonzalez shared the importance of budgeting for unexpected events that her family has overcome and ways she has accomplished a 3 month emergency fund and building towards 6 months. Ms. Gonzalez reviewed the 50/30/20 Budget Rule as explained below:
50%: Necessities – These are bills that you absolutely must pay and are things necessary for survival. Example: Mortgage or Rent, Car Payments, Groceries (not going out to eat) and Utilities.
30%: Wants – These are all the things you spend money on that are not absolutely essential. Example: Going out to restaurants, movies, fitness memberships, vacations, entertainment, Shopping. Ms. Gonzalez shared she has become more intentional with going out with friends/vacations. Rule of thumbs she has stuck with is going out 2 times a month living in a remote location leaving her house is a full day’s worth this way each trip out is more meaningful.
20%: Savings – Finally try to allocate 20% into an emergency fund. Ms. Gonzalez recommends building an emergency fund before investing into the market. High Yield Savings are also a great option.
Take a trial month to write down all of your expenses and start categorizing into these 3 categories. You’ll be surprised on how much you spend without thinking about it and you can start making intentional efforts to start saving each month after.
