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Welcome to episode two of The Finance Couch, where Ross Mack and Andini meet 21-year-old Stella, who has questions about how to budget the right way.
Gen-Z gets a lot of criticism for spending their money too frivolously and neglecting to save for the future. Stella wants to challenge this stigma by setting up a budget that incorporates all her wants and needs in one.
Ross’s suggestion? Using the 50-30-20 budget: 50% of income for necessities (like rent and groceries), 30% for personal desires (including coffee and vacations), and 20% for savings and debt repayment. This way, Stella can indulge in luxuries while also having her other bases covered.
Using a budget doesn’t have to be stressful and restrictive; instead, it can be a great way to access and prepare for your own financial freedom.
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