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Money Coach Shares the Best Way to Budget a 50K Salary

This is so helpful!

A common myth about money management is that you need to be making a lot of money in order to manage it well. While it's true that living paycheck-to-paycheck makes it difficult to set a lot of money aside for savings, it's not impossible. You just need to sit down, look at the numbers and account for every little detail.

Money Coach @daniellemoneycoach (Danielle) posted a helpful video breaking down how she would budget a 50K salary. She used sample numbers from clients that not be that far off from where you are now.

In this sample, Danielle's client already had 3,000 in a savings account and $5,000 in credit card debt. Their monthly paycheck came out to $4,167. After accounting for taxes, healthcare and other essential expenses, they were left with $1,357. 

The next step was to prioritize where the rest of that money went. Danielle suggested they allocate these funds to their 401K and emergency fund before paying off any high-interest debt. Whatever they're left with this theirs to spend as they please.

"Great info as to how to prioritize the extra money!" @katelynosterdale wrote in the comments. Some commentators noted that key expenses such as food and transportation. Budgets look different for everyone, which is why you should try before you deny.

If these numbers seem unrealistic to you, tailor the budget to your needs. Contribute less to your savings and 401K and more to paying off your debt. Remember, you can also cut spending to make room in your budget. It's all about approaching your situation with an open mindset.