A budget ratio is a ratio used to indicate a budget breakdown for better money management. It is one of the most popular ratios in personal finance because it outlines how you can manage your budget effectively. The usual budget ratio is 50/30/20 which is 50% of your budget for needs, 30% for expenses, and 20% for savings. Using a budget ratio helps you determine where you are financially and can help you achieve your money goals.
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