 TITLE: 4 Types of Budget Plans to Know About CONTENT: 2\\. 50\/30\/20 Plan\n-----------------\nIf you want a simpler approach to managing your money, the 50\/30\/20 budgeting method could be a better approach for you.\nWith the 50\/30\/20 plan, there are only three spending categories you'll need to keep track of: necessary expenses, discretionary expenses and financial goals. As a benchmark, the plan works out so that 50% of your expenses go toward necessities, 30% goes toward your lifestyle and 20% goes toward financial goals like paying off debt, saving and investing.\nThat said, you can come up with your own ratios based on your current situation and your goals. For example, if you have a lot of debt or a small emergency fund, it may make sense to put more than 20% of your budget toward those goals while also cutting back on discretionary spending.\nThis budgeting plan can be good if you think too many budgeting categories will be overwhelming and you prefer a more straightforward approach. END