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  The 50/30/20 rule (also referred to as the 50/20/30 rule) is one method of budgeting that can help you keep your spending in alignment with your savings goals. Budgets should be about more than just paying your bills on time—the right budget can help you determine how much you should be spending, and on what.  The 50/30/20 rule can serve as a great tool to help you diversify your financial profile, reach dynamic savings goals, and foster overall financial health. 50/30/20 Budget Calculator Here’s how much you have for: Essentials $0.00 Wants $0.00 Savings $0.00 Monthly after-tax income   Reset In this post, we’re taking you through the steps of budgeting using the 50/30/20 approach so that you can learn  how to set up a budget  that’s sustainable, effective, and simple. Use the links below to navigate or read all the way through to absorb all of our tips on how to budget using the 50/30/20 method: What is the 50/30/20 Budgeting Rule ? Essentials: 50% of y...

Living within your means is an important component of having strong and healthy finances.  Creating a budget  can be a great first step to making sure your financial house is in order. As you look through your monthly expenses, there are two different ways that you can improve your monthly cash flow.  The first is to cut your expenses – look for ways that you can spend less each month. When you first start tracking your expenses (like with one of our  free monthly budget templates ), you’ll likely find a few areas to cut back on. Over time, however, you’ll probably run out of ways to cut your expenses. After all, there are so many extra lattes and gym memberships that you don’t use!  The other way you can  increase your savings rate  is to find extra income. In this article, we’ll look through a few side hustles and other ways to find extra income. Sell things you aren’t using and don’t need Most people always have things lying around the house that th...

There are more than a thousand IRS tax forms for reporting various kinds of income, expenses and other financial data—and each piece of paperwork bears its own letter or number, which can seem as foreign as a new language. Fortunately, learning just a few key tax forms can give you much of the information you need to understand your tax return. Here’s a primer on some of the documents you’ll want to be familiar with as you use TurboTax to prepare your tax return. Which tax forms to use? The documents to start with are the 1040 and 1040-SR. For tax years prior to 2018, Forms 1040EZ and 1040A were available but have been phased out beginning with the 2018 tax year by a redesigned Form 1040 and a new 1040-SR for those 65 and older. The 1040 family of forms serves as the center of your tax return. Form 1040EZ  (prior to tax year 2018) is the simplest version of this essential tax form. You generally can file it if you: Have no dependents Are younger than 65 Earned less than $100,000 Do...

  The IRS requires employers to report wage and salary information for employees on Form W-2. Your W-2 also reports important details about the amount of federal, state and other taxes withheld from your paycheck as well as other employer fringe benefits like health insurance, adoption and dependent care assistance, health savings account contributions and more. As an employee, the information on your W-2 is extremely important when preparing your tax return. In general, if you worked as an employee in a given year, you should receive a W-2 from your employer near the beginning of the following year. You will also receive a W-2 if your employer withheld any taxes from your paycheck. Key Takeaways Form W-2 provides important tax information from your employer related to earnings, tax withholding, benefits and more Your Form W-2 should be sent by January 31st of each year and be used to prepare your tax return The IRS uses W-2s to track employment income you’ve earned during the prio...