50/20/30 Rule

50 percent of your paycheck should be set aside to pay for the key things you need to survive. These funds would go towards rent, utilities, groceries, gas/transportation, prescriptions, and minimum payments for your current debts.

Setting aside 20% for savings will help you build your emergency fund and can also be used to pay down any debts you might have.

The last 30% should be used to pay for things that you can live without but don't want to. This money is used to cover your wants – things that make your life happier.

Get smart with your money

IU has great resources to help you make your money work for you. MoneySmarts is a program to help students make informed financial decisions before, during, and after college. If you would like to learn more about budgeting and managing debt, visit our friends at MoneySmarts!