What if? Do you ask yourself questions that needed to be asked about your future? What if you get in an accident and unable to get up to go to work, to make a living? Do you have money to pay your bills until you get back on your feet. What if you are unable to pay your rent or mortgage and receive a notice to vacate? If it is just you and something happens are you able to function without help? It is time to start thinking about your future, now. To prepare yourself for the day you will not be able to do for yourself. If your husband dies, your wife dies are you prepared to go on. Can you survive? Though we have our dreams, we still must be realistic and look at what you have now and evaluate your life when you don't have what you have now. As the squirrel collects nuts for the winter, we have to have a plan, another option to go along with our dreams. Even those born into money still need a plan to live in case they run out of money. So let's set down and plan our future. Even as a kid our future needs to have some direction. Put aside a portion of what you make for emergencies. Let's call it an emergency fund. Try to have at least 3 months that you have put aside. Everyone can't do it living pay check to pay check, but you always must invest in yourself first. Most wealthy people pay themselves first. Start to make it a habit just like you try to pay your bills, you have to pay you as well. There are many budgeting methods out there for example, Budgeting Basics: The 50-30-20 Rule

Creating a budget can help you make confident decisions and enjoy peace of mind. A detailed budget, though, can be complex to manage. For one easy way to plan your spending, you might try using the 50-30-20 rule.

The 50-30-20 rule splits expenses into just three categories. It also offers recommendations on how much money to use for each. With some basic information, you can get on the road to financial well-being.

Savings

Getting Started

Start by taking a look at your paycheck. If taxes are withheld, subtract that amount from your total earnings. Do not subtract other amounts that may be withheld or automatically deducted, like health insurance or retirement contributions. Those will become part of your budget.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let’s take a closer look at each category.

Data Pie graphs 

Needs: 50%

About half of your budget should go toward needs. These are expenses that must be met no matter what, like your utility bills. If you can honestly say “I can’t live without it,” you have identified a need. Minimum required payments on a credit card or a loan also belong in this category.

Tip:

Choose a home loan with competitive rates to keep mortgage payments manageable. Explore options for financing your dream home at UNFCU, including US mortgages and international home loans.

Rent or mortgage payments

Minimum payment on loans

Heathcare

Groceries

Wants: 30%

You subscribe to a streaming service to watch your favorite show, not because you need the subscription to live. Wants are things you enjoy that you spend money on by choice.

Tips:

Subscriptions

Supplies for hobbies

Restaurant meals

Vacations

Savings: 20%

The remaining 20% of your budget should go toward the future. You may put money in an emergency fund, or save toward a down payment on a home. Paying down debt beyond the minimum payment amount belongs in this category, too.

Tip:

Options to grow your money for the future include savings accounts and share certificates.

Paying down debt

Retirement

Savings account

Investments

The 50-30-20 rule is just one way to consider organizing your budget. To find the perfect fit for your situation, consult a professional financial planner.

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Learn more, Thank, UNFCU for their advice on budgeting. Google the 50-30-20 rule. See the advantages and disadvantages. Some say your rent should be 20 percent of your monthly income. Is it possible you are living above your means? Only you know. Even though we have dreams we must also learn how to survive and be self sufficient. Don't always be the one asking for fish to eat, be the one to learn how to fish and never be hungry.