Budgeting tips for beginners
On Wall Street, I built businesses by tracking every dollar and eliminating waste. For beginners, budgeting is the same — give your money a plan before it disappears. With 65% of Americans having no written budget (CNBC, 2023), mastering the basics is the first step to wealth.
1. Track Every Expense
- Use apps like Mint or even a notebook.
- Awareness alone reduces spending by 15–20%.
2. Follow the 50/30/20 Rule
- 50% Needs: rent, food, utilities.
- 30% Wants: dining, entertainment.
- 20% Savings/Debt: build wealth and reduce liabilities.
3. Automate Savings
- Treat savings like a bill.
- Even $200/month = $2,400/year without thinking.
4. Cut Hidden Costs
- Audit subscriptions and impulse buys.
- Average household wastes $133/month on unused services.
5. Build an Emergency Fund
- Start with $1,000, then grow to 3–6 months of expenses.
- Shields you from debt traps.
6. Review Monthly
- Adjust categories, track progress.
- Budgets aren’t static — they evolve as income and priorities shift.
Final Word
On Wall Street, success came from discipline, not luck. For beginners, budgeting is the same: track, automate, and review. Start small, stay consistent, and watch savings compound into financial freedom.
