Creating a 50/30/20 budget is an efficient way to manage your finances and build financial security. This budget helps you identify which expenses are necessary, which can be reduced, and where you can save money for future goals. 

1. CALCULATE FIXED COSTS

Begin by calculating your fixed costs such as housing, transportation, insurance payments, loan payments, etc. These should not exceed 50% of your total income each month. 

2. LIST ALL DISCRETIONARY EXPENSES

Next list out all discretionary expenses such as entertainment, eating out, shopping trips, hobbies etc. These should not exceed 30% of your total income each month. 

3. SET ASIDE 20%

Finally, set aside 20% of your income each month towards savings and investments. This amount can be used for emergency funds, retirement planning, investing in stocks, or any other long-term goals you may have. 

4. TRACK EXPENSES

Once you have created your budget, it is important to track your spending throughout the month. This will help ensure that you remain within the 50/30/20 guidelines and make adjustments if needed. With these steps you will be able to create a budget that allows you to live comfortably while saving money for future goals. 

5. STICK WITH IT

Finally, it’s important to stay disciplined when sticking with your 50/30/20 budget. It may take some time to adjust to a new budgeting system, but following these guidelines will help you achieve your financial goals in the long run. With a little bit of planning and discipline, you can be well on your way to achieving financial success. 

Good luck!