difference

• What is one of the most challenging aspects of creating a budget?

  Differentiating between needs and wants
• Should needs or wants be prioritized in a budget?

  Needs should be prioritized over wants
• Why can the line between needs and wants be blurry?

  Because what is classified as a need vs. a want isn't the same for everyone
• How can knowing the difference between wants and needs help with budgeting?

  It can make it easier to create and stick to your budget
• What should have a place in your budget?

  • Both needs and wants
• What are considered needs in a budget?

  Housing, utilities, food, healthcare, and transportation
• What are considered wants in a budget?

  Dining out, entertainment, streaming services, and gym memberships
• What is the 50/30/20 budget rule?

  • 50% of the budget for needs
  • 30% of the budget for wants
  • 20% of the budget for saving and debt
• What is reverse budgeting?

  It involves determining needs first, then setting aside savings and debt payments, and using the remainder for wants
• If your total budget is $1,000, how much should you allocate to needs according to the 50/30/20 budget rule?

  $500
• If you want to save $200 a month using the 50/30/20 budget rule, how much should you allocate to wants?

  $300
• How does the allocation of a budget differ between needs and wants?

  Needs are essential expenses, while wants are nonessential and can vary by individual