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To summarize, it is important to create a realistic budget by setting limits for different spending categories based on your expense tracking. The 50-30-20 rule suggests allocating 50% of your income for needs, 30% for wants, and 20% for savings and debt repayment. Next, create a realistic budget. Based on your expense tracking, set limits for each spending category. Allocate funds for necessities, savings, and discretionary spending. A good rule of thumb is the 50-30-20 rule. 50% of your income goes to needs, 30% to wants, and 20% to savings and debt repayment.
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