 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: How the 50\/30\/20 Rule Can Help You Pay Off Debt\n-----------------------------------------------\nIn addition to helping you save more, the 50\/30\/20 rule can give you a framework to allocate more money toward getting out of debt.\nAs part of the \"savings and debt payments\" category, you'll pay extra beyond the minimum debt payment required so you can apply more of your money toward principal balances. Using the 50\/30\/20 rule, identify how much extra you can comfortably pay while addressing other priorities, too.\nFor instance, say you earn $2,500 per month after taxes. You'll aim to spend no more than $1,250 on necessities and $750 on wants, leaving $500 for savings and debt payments. If you have a credit card balance of $2,000, you may decide to focus more energy on debt payoff this year. So perhaps you'll limit your wants to $500 per month and put the extra $250 toward credit card bills instead, giving you eight months to pay off your balance. The other $500 in the savings category can be allocated to retirement and emergency savings accounts.\nIn general, it's best to attack high interest credit card debt first, then move on to the balance with the next-highest interest rate. You'll save the most money in interest that way. END