By Nikas Malmygin 

Peer-edited by Money Unpuzzled Team

Published 03/4/26

Have you ever wondered...how do I manage my money?

Well, in short, the answer to your question is BUDGETING.

To control and know your spending, you should set up a budget. While it may seem intimidating, there are useful budgeting plans and strategies to help simplify the process. First, create a list of your income and expenses. Then, subtract your expenses from your income. If you have any extra cash, plan how you will use it. Budgeting is essential, and staying consistent each month makes all the difference.

Specific Budgeting Strategies

There are many different budgeting plans and strategies. A popular one is 50/30/20. It works like this:

50% of your income goes to needs

30% of your income goes to wants

20% of your income goes to savings/investments

While this is a great budgeting plan, it is not sustainable for everyone. Rent, groceries, bills, taxes, and expenses are harder to afford in more urban areas, such as New York City. For people in these areas, the 70/20/10 plan may be a better option. It works like this:

70% goes to needs

20% goes to savings and investments

10% goes to wants

This way, you will be more likely to pay off all your necessities and still have money to save.

Following a budget plan helps you stay in control. After establishing your needs, set a realistic spending limit for things that are wants: gifts, travel, and luxuries. Tracking your purchases as you go prevents overspending and reduces stress. With a clear plan, you can alleviate your financial anxieties by knowing your money is organized.

Overall, budgeting is very important for money management and financial stability. It is better to start young!

START NOW: Start managing your budgets with our: Budget Tracker