The Secret To Financial Freedom: Follow The 50/30/20 Rule In Nevada
July 8, 2020 | Emma Frost
When it comes to financial help, going to title loan places in Nevada can really lend you a hand. Title loans are loans you can get when you use your vehicle’s title as collateral. If you are approved for the loan, you can qualify for anything up to $15,000 to help with unexpected situations and emergencies. It may not give you a permanent fix to your finances, but that doesn’t mean it can’t help get you started on the path to financial stability. If you are looking to avoid a financial emergency then a vehicle title loan is an option you should look into. But, if you are really focusing on reaching financial freedom, there is one thing you absolutely need: a good budgeting plan.
Why We Need To Have A Good Budget
There is no getting around it. If you don’t have a good, set budget in place, there is no way you’ll have any sort of financial stability or make your way to financial freedom. Having a budget is what keeps our money in order and allows us to be able to buy what we need while still build our savings. One rule commonly used to begin budgeting money is the 50/30/20 rule. This budgeting rule means that 50% of your paycheck is used for essential spending, 30% is used for recreational spending, and the last 20% is what you set aside for your savings. Following a rule like this puts you into an easy routine to follow and maintain. There is no need to make your budget complicated. A simple rule is all you need to actually stick to your budget and manage your money correctly.
Breaking Down The 50/30/20 Rule
How The 50% Works
When we say 50% for essentials, we mean everything you need for your everyday life. Things like food, hygiene products, gas for your car, insurance, and your utilities would fall in this category. These are the things you have to dedicate half of your paycheck to because they impact your life the most. Essentials do not include things like streaming services, going out, or even eating out at restaurants. Since these are essential to your everyday life, you should make decisions that make paying for these things doable on your paycheck. If you are struggling then that may mean you have to rethink what you are spending on and how you can cut costs.
When you are wondering how you can cut costs on essential spending, it just means on making some adjustments. This means instead of shopping for brand name foods, look at food that is a generic brand. These type of foods are considerably a lot cheaper for you to buy. You should also look into coupons because, if done correctly, you can find a lot of great deals. Another way to cut costs is paying the minimum on your bills. This may take you a little longer but it beats the alternative of not being able to handle all of them and risking having late fees.
How The 30% Works
After you’ve finished paying for your essential items, 30% of your paycheck will go towards recreation. This is where you allocate funds for going out to eat, shopping, your electronic devices, and so on. This is the part where you can easily go overboard and overspend your 30%. It is so easy because you don’t really pay attention to how much you are spending when you are having fun. This is the one where you really need to buckle down and stick to your budget. Having a written record of what you spend on and how much you spend in one day out is a great way to start. You can also opt to only spend on things like clothing when you actually need new clothes and take advantage of sales in Nevada on items you need.
How The 20% Works
After you’ve dealt with your essentials and allocated funds for your days of recreation, you can now take the rest of your paycheck and put it into your savings. This is where you should research ways to make your savings work for you. This means putting your money into a savings account that will grow over time. Another option you have is looking into a 401K from your employer. The good thing about that is, if your job offers this, your employer will match about 3% of your contribution. You can also look into investing your money in stocks and bonds. You have a lot of options available to you to have your cash grow if you maintain it correctly.
When Unexpected Situations Arise, Turn To Title Loans
Being able to follow this rule and stick to your budget all the time is the ideal situation. But we all know that life can be unexpected. You will inevitably deal with unexpected situations that come with expensive expenses. When that happens, you can turn to title loan places from all over Nevada. These loans will do a lot to ease the burden of whatever emergency you are going through. While this loan cannot, and should not, be used to pay off your debts, you can still take it a long way if you use it correctly. We have many knowledgeable loan representatives that are willing to sit down with you to answer any of your questions and give you more information and get you on your way. Just fill out our online form or just walk into any of our title loans places to begin.