Evaluate Your Finances And Try Proportional Budgeting To Find Balance 

Missouri Title Loans, Inc. believes that proportional budgeting allows you to get the most out of your finances. With such an approach, you could trim the unnecessary expenses and start setting up an emergency fund without neglecting your ‘wants.’

Keep reading to learn how to build your proportional budget and what to do when things are unplanned.

Evaluate Your Finances And Use Proportional Budgeting To Find Financial Balance

What Is Proportional Budgeting?

There is no one-size-fits-all budgeting method. Proportional budgeting is one of the most popular approaches. Such a method allows you to be flexible with your budget while prioritizing saving.

Proportional budgeting is about dividing your spending into a few separate categories. For example, you can choose to split your income into such categories as needs, wants, and savings. Let's discover how you can begin that process today. 

Needs And Wants

The ‘needs’ category typically requires the most finances (around 50%), including expenses like housing, utility bills, groceries, gas, and anything else you can’t survive without. It is important to spend about 30% of your budget on your ‘wants’ ( hobbies, shopping for clothes, dining out, subscriptions, etc.) as these are the things that will help you avoid burnout.

Savings

Finally, we have the ‘savings’ category. Even if, at the moment, you do not have a significant financial goal in mind, setting aside around 20% of your income is always a great idea. In 6-18 months, you’ll already have a relatively big emergency fund that might be useful if you ever find yourself in a challenging financial situation.

How Can You Evaluate Your Finances To Build A Proportional Budget?

The 50/30/20 rule can be used as a benchmark by those who want to start budgeting proportionally. But, at one point, you might find out that another proportion works much better for you, and that’s completely normal!

Many people prefer the 80/20 method – they put 20% of their income away, and the rest of the money gets distributed between needs and wants. This might be a more convenient approach for those who spend different sums on monthly bills and entertainment.

In any case, you should begin by evaluating your finances to determine your perfect proportion.

1. List all of your sources of monthly income, including salary, pension, interest, etc., to find out how much you earn. Don’t forget to subtract the taxes from the sum if they’re not automatically taken from your paycheck.
2. Try keeping track of your expenses for at least a month.
3. Divide the expenses into fixed (rent and insurance payments, for example) and flexible costs.
4. Subtract the expense total from your income. What you have left can go straight into your savings account. If the result is zero or negative, you must trim some expenses to reach the 20% savings goal.

Apply For A Loan To Take Care Of Emergency Expense

With proportional budgeting, you will likely manage to set up a reserve fund in about a year or so, but unfortunately, many things can happen during this time.

A title or an installment loan might help you take care of an emergency expense in case you don’t have enough money in your savings account.

Though there are many lenders, you should choose a loan from a reputable service provider such as Missouri Title Loans, Inc.

5 Reasons To Choose Missouri Title Loans, Inc.

1. You might get approved for up to $15,000 for a title loan or up to $1,500 for a signature installment loan in only 30 minutes.
2. You’ll only need a few items to get the money – your ID, lien-free title, and vehicle for a title loan, and your ID, proof of income, and checking account statement for an installment loan.
3. You can start the process from the comfort of your home by filling out a quick online form or calling us directly.
4. We have 17 store locations for you to choose from. By the way, if you go for an online title loan, you won’t even have to visit a store!
5. our friendly representatives are committed to helping you get the money you need quickly. You will be treated with care and respect throughout the whole process.

Find Your Financial Balance Today!

Proportional budgeting is a fantastic way to better your finances and find balance. But it would take some time for the method to work its magic. If you haven’t established a large enough reserve fund, a loan from Missouri Title Loans, Inc. might help you during a financial emergency.

We work with all types of income and credit. Moreover, with us, you might receive the much-needed cash as soon as the same or the following bank day. If you'd like to get started, please fill out our inquiry form.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.