Stop Stressing About Money: A Simple Budgeting Plan You Can Actually Follow

Confused about where to start with your money? You’re not alone. Whether you’re just starting your career or trying to get your finances back on track, budgeting doesn't have to be overwhelming, it just needs structure.

In this episode, we break down exactly how to set up a budget that works for YOUR reality, not a textbook. We’re deep-diving into the 50/30/20 rule, why an emergency fund is your greatest financial safety net, and how to start small to create big, compounding changes in your financial future.

⏱ What's Covered in This Clip

✅ The 50/30/20 budget breakdown (and how to adjust it for your reality)

✅ Why "getting started" is more important than being perfect

✅ The difference between saving 6 months of salary vs. 6 months of expenses

✅ Why an emergency fund is the ultimate key to career flexibility

✅ Simple steps to start compounding your wealth today

🎙 Featured Guests

Dr. Constance Craig-Mason, MRFC®, NSSA® CEO, Concierge Financial Advisory | Founder, Money Talks Movement 

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Laura Pesek, CFP®, CLU, ChFC Certified Financial Planner & Fiduciary 

🌐 https://rosefinancialassociates.com/

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Transcript

How To Start A Budget

SPEAKER_00 0:00

How would you set them up? We talked about a little bit, but I want to talk about let's talk about how they can actually set up an actual budget so they can walk away from this um episode here, this brunch episode that we're having, that they can come up and actually start budgeting. How would you start them off?

The 50 30 20 Framework

When The Math Does Not Work

SPEAKER_03 0:21

I start the how do you say middle income or upper middle income people? I start them the same way I start the lower income people because it's about structure. So going back to the CFPB that I referenced earlier, they have a framework, a loose framework for how you should structure your expenses. So they go 50, 30, 20. So 50% of your focus should be on your expenses, the things that you have to pay every single month. Then like your mortgage, your car payment, guys, your food, your gas, your insurance policy payments, all of those things in the 50% of your income category. And then it will be 30% for your wants and then 20% for your savings, investments, and things of that. Some people will even put like their tithing or their giving into that 20% category. Now I've had people to say, because I grew up in poverty and I know what that feels like to be so tight that this framework does not work. And so I tell them you have the flexibility to make this pie chart whatever is reflective of where you are now. So if you're a 90-10, okay. That doesn't mean you're always going to be there, right? But you have to start, like you mentioned, looking at everything, making sure you know why it's 90-10. Why is this 90-10? Right. Are my expenses too high? Is my car payment too high? You you would be able to know that by structuring it. But ideally, they want you to be able to not overextend. So if 50% is on everything you have to do, and then 30% is you enjoying yourself, and then 20% is, yeah, I have some long-term goals. I want to retire, I want to buy a house, I want to do this and that. So you're able to, if you lose use that as a loose framework, you can structure it based on what your current situation is. If you're someone, you don't have two incomes coming in the house, it's just you and maybe your children, then it might be tight right now. But when you get some access to that maybe extra money, maybe it's a tax return or some kind of bonus at work, something like that. Then if when you've looked at everything and the reason why you're at 90 10 is because you have high expenses, well, maybe you take that extra money and you try to get those expenses down. Right. If that means paying off one of those cards so that your minimal payment is not as high or whatever, you can use that extra money to take care of that. So you can get closer to that 50-30-20. Right. Because that gives you the freedom to be responsible and enjoy your life. Right. So for those who are not financially challenged, 50-30-20 is fair. You could change it to higher one, want to do it. Because maybe your expenses aren't that high. You're at like a 30% expenses. So now you can invest more, you can do more fun stuff. So as a pie chart, right? 50-30-20 is fair.

SPEAKER_00 3:10

Okay. And if 50% are your essentials, the 30% is your wants. And the 20% is for investments. Yes. Got it. Okay.

Start Saving Early With 401k

SPEAKER_02 3:17

And that's that's pretty much how I I feel too, is that you gotta start with something. And yes. And I and if we're talking to younger folks today, you know, if you are in that position where you're just getting started, and and again, maybe this is more money than you've ever had. Um a lot of the um employers are offering the 401k plan. Yes. If you just start early, start saving, take advantage of those plans. Um, I'm not sure we're gonna get into specific recommendations here, but if it's just again putting money aside from your personal checking account to cover those 50%, maybe put that money into the savings account. So it's outside of your checking account and start building for those goals. Um, and take advantage of those um those retirement plans. Start early. You know, even if it's a little bit, it is okay. A step in the right direction um will will really compound that effect.

Emergency Fund And Debt Strategy

SPEAKER_00 4:19

Yeah, keep going because actually that was the the next topic that I would discuss, like where should your money go? So you have this extra money. Yes. Um, you have the 20%. You weren't working on that 50, 30, 20. So the 20%. So where should we put it?

SPEAKER_02 4:32

I would definitely say just a rule of thumb is build yourself that emergency fund. Once you kind of get yourself out of debt, build that emergency fund above and beyond if it's retirement goals or the house fund or car fund. Um, and a rule of thumb is have about six months of your living expenses because something could happen at your job, something could come up, you know, all for those people that own a home. It could be the roof, something happens on the house, um, something happens to your car. So just having that emergency fund couldn't. Sure, you just had someone's heart go into their stomach.

SPEAKER_00 5:09

You said I had to save six months of my salary.

SPEAKER_03 5:12

No, six months of your expenses. I might have said salary.

SPEAKER_00 5:16

No, her expensive. It was expensive. Salary. I'm like, Lord, she just lost a whole lot of people. Expenses. Yeah. Okay, I'm so glad I asked. I was like, you just lost a lot of people, right?

SPEAKER_02 5:32

Would be a good rule of thumb because if you lose your salary, if something if something happens to your job, you know, and especially as you build um your future together with a significant other or you get married, your job situation is gonna constantly be changing. So to have just that flexibility of a cushion to fall back on, it's gonna be okay. Okay, this is a temporary thing so that you don't get yourself into debt again because of the unexpected.

SPEAKER_00 6:01

You have options and you can make better decisions. They don't have to be rushed, like I need this that I more than it needs me. So you're you're you lose a job, you start another job just because you need that income coming in. Exactly.

SPEAKER_02 6:13

Yeah, right. You could be more selected, or or again, maybe you left that job for another opportunity. Maybe you want to change career paths, and this will give you the time to think about it. Perhaps some some choices to make instead of jumping into it.

Sponsor And Where To Watch

Erica Rawls 6:29

I hope you got a lot of value out of that clip. That full episode can be found here, and it's sponsored by Top Construction. They are a full construction company located in Central PA. The reason why I like them is because they're reliable, they're reasonable, and they're that good. And don't forget to watch the full episode.