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  • Ok well let's start with something easy Needs. I the most important so you will use 50% of you net income also known as you pay check.
  • That's because Needs are like rent, groceries, etc basically Needs is anything you can't live without.
  • Patience we'll get to that next, in the mean time do you have any question for Needs?
  • Actually I do why is Need 50% and the others are less?
  • Ok it's starting to make a little more sense but if there's three different sections and Needs is 50% then how do I split the other 50?
  • Ah I get it now!!
  • Now for wants you will put 30% of you income in Want. that way if you ever want to treat yourself you will have money to pay kind of like this meal we had.
  • Yes ma'am! That way next time we hang out you also can spend your own money!
  • Because you need to put the rest of that money into your Saving!
  • I can't wait! But what do I do about the extra 20% why can't I just put it in with the Wants?
  • Wait, so your telling me that even with paying off my bill and other important things I can still spend it on myself as a reward!?
  • Well the one main reason for it is because you never know when there'll be an emergency.
  • Well ow you know hoe to budget have fun now and live your life how you want!
  • Your going to need that extra money just incase something happens.
  • Ah I get it now that makes a lot of sense now!
  • So I'm supposed to put the rest of the money into my savings but why?
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