2 SIMPLE BUDGETING STRATEGIES YOU CAN IMPLEMENT TODAY
No Spreadsheets Required
Paying off debt and saving money are the building blocks of a healthy financial life, but the statistics are dire: One-third of Americans haven’t saved a single penny for retirement, 38% of households have credit card debt, and 44% don’t have enough cash saved to cover a $400 emergency expense. If you see yourself in those numbers, there’s no better time than now to start working on healthier financial habits because April is Financial Literacy Month. Even with myriad apps available to help, budgeting can still feel intimidating. So, why not keep it simple with these two systems you can implement today? The 50-30-20 Strategy Before she was a U.S. senator, Elizabeth Warren was a tenured law professor at Harvard, specializing in bankruptcy. During that time, she published the widely acclaimed personal finance
book, “All Your Worth: The Ultimate Lifetime Money Plan.” Some 16 years later, her advice still holds up. That’s because Warren’s approach to money is simple and flexible. She suggests allocating 50% of your income to needs like housing, groceries, and utilities; 30% to wants like entertainment, vacations, and eating out; and 20% to savings, which starts by building a three-month emergency fund and then allocating savings to a retirement fund thereafter. If you have credit card debt, Warren suggests allocating that final 20% to debt repayment before you start saving. Otherwise, you’ll just backslide as interest mounts on your existing debt. If you’re able to save more than 20%, adjust the ratios accordingly. If you can’t save 20% just yet, start with less (even 1% each month adds up!) and
make a goal to increase your savings by 1% each month or quarter. The Anti-Budget Strategy If Warren’s budgeting strategy feels too complicated, try financial expert and “Afford Anything” podcast host Paula Pant’s anti-budget. Each time you get paid, skim 20% (or whatever your current savings goal is) off the top, put it in a savings or retirement account, and spend the rest however you’d like. Pant’s logic here is that if you tell yourself you’ll save “whatever’s left over at the end of the month,” you’re unlikely to save anything. Free yourself from the worry by saving first, then spend the rest guilt-free. If 20% feels like too lofty a goal, start with whatever feels doable and work to increase that by 1% each month or quarter.
(AND THEIR PAWSOME FUR BABIES) MEET OUR TEAM’S PET PARENTS!
If you’ve been reading this newsletter for a while, then you already know that Emery Law Office is a firm full of animal lovers. Melissa has her adorable Labrador, Bella, who often makes appearances in this newsletter — you might remember her love letter to her rope toys for Valentine’s Day — but she isn’t the only dog mom on staff. Since April 25 is National Pet
Maribel with her dog Yuki, 2 years old
Libby with her dog Mae Jean, 3 years old
Parents Day, we thought it was only right to introduce you to a few more of the animal owners on our team! This is just the tip of the iceberg. Enjoy their sweet faces, and if you have a cute photo of your pet, share it on our Facebook page, Facebook. com/EmeryLawOffice/ , with the caption “Emery Law National Pet Parents Day.”
Joel Franklin's
5-month-old goldendoodle Lucy
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