Budgets and Finance? which theory works for you?
@In_a_Crafting_Daze (88)
United States
April 25, 2007 11:45am CST
There are many different budgeting theories out there. My favorite is the 30-30-30-10 rule. I don't follow it well, because my husband and I are still working on getting things inside of the 30-30-30 guidelines...
What is your favorite budgeting technique?
1 person likes this
1 response
@lightningMD (5931)
• United States
25 Apr 07
Could you please explain what the 30-30-30-10 rule is? We are currently trying to dig ourselves out of a very big debt hole. Any ideas to help would be greatly appreciated.
@In_a_Crafting_Daze (88)
• United States
25 Apr 07
This is supposed to be the easiest technique (and it works best with the "envelope" technique which is pretty much just a "cash only" way of doing things)
Gross Income less taxes less tithing (if you tithe or something similar) equals Working Income
10% of working income should go to savings of some kind, savings account, 401k, IRA etc.
30% should go to pay for house, insurance
30% to things like car and phone etc.
30% food, clothes, extras
I think it is based on how creditors look at your finances but I'm really not sure. It has always looked like a reasonable goal to try and meet.
