How to budget your money if you make $40,000 per year

A simple spreadsheet is all you need to create a budget.

There are countless free or affordable tools if you prefer tech-savvy solutions, but the 50-30-20 rule can be a quick and easy option to get your finances under control.

And it’s pretty straightforward: You split your money between your needs, wants and savings, according to those ratios.

Don’t be discouraged if your categories don’t add up at first. The more you track your spending and keep an eye on it, the better you’ll be at getting more out of your money.

Here’s a case study.

CNBC crunched the numbers, and we can give you an idea of what your budget should look like if you make $40,000 per year. Check out this video for a step-by-step guide to making a budget that will work for you.

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[gosikh]

Where is rent $700 and car payment of $125?

[christianandrews]

So it was ridiculous when they broke it down in the 50K video, but good luck finding a place to rent for 700 dollars in NJ

[jamesbrett]

Rent 1850
Utilities 250
Car 250
Food 400
Phone 100

Didnt even add any wants and i make less than 40k.

[MrTheguywiththemoney]

Here's the real numbers... $1000-1200 rent, $250-350 car payment, $200-300 utilities, $100 gas, 400-600 groceries

[greorbowlfinder]

Hilarious! Where the heck is rent 700 and car 125? Stupid people talking down to the working class again.

[ryanharris]

$700 rent? A studio in a bad neighborhood is $900 in most places. Utilities 200-250. Lol

[empressonthethrone]

Rent is listed as $700 ended in the 3-4 times that in 2021. Get ya facts right 🙄.

[DefineArt]

This is spam ! Bills 100 ? Car 125 ? Rent 700 ? Joke

[joanwiebe]

If you’re making 40, 000 you’re not surviving in today’s world!?

[joanwiebe]

What year was rent or a car payment those amounts 1970?!?!!

[Epofapent]

Don't know where they are living but rent for 700 does not exist in Phoenix unless it's a BEATDOWN Area and one room what if you have kids? Terrible.

[tylerking]

So where is this cheap rent and groceries?

[Peace.king]

$700/rent
Let's assume that ur going half on the rent with someone "stable"- only way this will happen.

[g.r.bryant]

$700 for rent?? !! Where do they live ?? !!

[INSANEDOMINANCE]

Rent. $700 10 years ago. Without a roommate.

[julianmorales]

The most unrealistic budget I have seen. 125 car payment? 700 rent? 200 groceries? this video is a joke.

[someone-jizb]

Where in the frickin world can you find a $700 rent even a couple years ago rofl

The propaganda is insane man. Average rent in the US is around $1, 600. So basically, you aren't putting jack crap in savings, and your wants wont really be met. I say this because while I think they have the groceries a bit high, the utilities are way too low as well as car expenses.

In fact... you need a roommate.

[Kevin-sebg]

yeah my rent is like 1, 400 and my car payments are 449 so idk XD dude

[teknition]

Y’all need to come to Oklahoma rent stupid low compared to others

[alita]

My rent is the total expenses in this video 🙄