By Asia Grigsby —
“Ballin’ on a budget” is a widely known phrase with different meanings to everyone.
Whether you’re rich, a struggling college student or middle-class, everyone has a budget and their own definition of “ballin’.” It could refer to how much money you have to the expensive clothes you wear.
In today’s market, companies are merging from retirement plans to 401k plans. This move comes from the money being used up by baby boomers.
It has been said social security will not be available to those born after 1980.
Many millennials aren’t buying homes, getting married or having children like previous generations. It’s simply because they can’t afford it.
When asked how many held more than one job, eight out of 10 raised their hands. Along with the outstanding student loan debt, it makes it much harder to do things such as taking out a mortgage. That doesn’t mean it’s impossible, just harder.
Budgeting involves moving things around and having to sacrifice in certain areas. People who still live at home with their parents have more wiggle room than those that don’t.
Many people, not just millennials, don’t budget because they don’t make enough.
According to Forbes, the goal of budgeting is to spend less than you make. They recommend saving first before doing any spending.
They also suggest tracking spending for a week. The idea is managing unnecessary spending.
According to Elizabeth Warren, a Harvard bankruptcy expert, the 50/20/30 rule is one all adults should follow. Food, medication, and electricity are all considered needs.
Warren said 50 percent of pay should go towards all needs. Eating out, cable and going on lavish trips are considered wants. After pay, 30 percent can go towards all wants. The last 20 percent should go towards saving and debt repayment.
Following this rule has proven to be effective.
Budgeting can be stressful and it takes discipline. Not everyone is willing to sacrifice.
Budgeting is a plan that can be used to not only see what money is being spent on and how much, but it can also be used as a long-term plan for a more financially stable future.