The Rule of 50:30:20 for Financial Success

[Nomad]

This is a popular finance rule that divides your expenses into three categories

50% for needs (rent, bills, groceries)

30% for wants (entertainment, dining, hobbies)

20% for savings/investments

This rule will allow you to create a better budget and manage your finds. If investing and saving 20 percent of your income is too big, you can reduce to 10 percent but you still need to save and invest, you can use micro-investing and saving platforms. You can also adjust the ratio to suit your lifestyle.

Do you follow this rule?

 

[TopSilver]

I've never heard of this anywhere on the internet but it's interesting that you share with us because that does sound about right though I would probably put the needs at 60 percent at least as affordable housing these days is a thing from the past. Rent prices have skyrocketed.