I’m 26 and trying to get my budget on track. What’s the best way to balance saving, paying off debt, and still having fun?
Dear Cheryl&Mack,
I’m 26 years old and trying to get my budget in order - I’m struggling big time!
Right now, I’m balancing student debt, with travelling with friends and exploring new places locally all while building my emergency fund and and saving for my first home.
Any tips on how to make it all work?
Signed,
The Budget Newbie
Dear Budget Newbie,
First off, welcome to the budgeting club!
It’s great that you're thinking about this at 26—it’s the perfect time to get those financial habits in check. Balancing saving, paying off debt, and enjoying life is doable, but it takes a bit of strategy.
Here are a few tips to help you out:
1. Set Clear Priorities
If you’re juggling debt and saving, start with debt - especially if you have high-interest debt (like credit cards). Once that's under control, shift more toward savings. But don't forget about fun—budget for it! A little “play” money each month is key to staying motivated.
2. Use the 50/30/20 Rule
This simple rule is a game-changer. Break your budget into three buckets:
50% for needs (rent, groceries, bills)
30% for savings & debt (even a small amount adds up over time!).
20% for wants (dining out, weekend trips - “fun”)
It keeps things balanced without feeling like you have to live restricted.
3. Automate Savings & Debt Payments
Set up automatic transfers for savings and debt repayment. That way, you're less likely to spend what you meant to save. Even small amounts will grow over time.
4. Track Your Spending/Budgeting Worksheet
Create a straightforward worksheet that you can look at often and make changes as needed. This helps ensure you’re sticking to your budget and it’s still aligned with your needs. It’s important to check in regularly and update it, especially if your income or expenses change.
Here’s a simple worksheet you can download for free: Budgeting worksheet link.
I’m also a huge fan of Dave Ramsey. He has a great budgeting app called ‘Every Dollar’. Check it out here.
Finally, remember that budgeting is a journey! It's okay if you don't get everything perfect right away. The goal is progress, not perfection. And don’t forget to have fun along the way—life’s too short not to enjoy the little things!
You’ve got this!
Signed,
Mackenzie Campbell,
Associate Insurance Advisor