19/09/2024
How do you budget your earnings/income?
Well, a widely recommended investment rule is the 50/30/20 rule. You've heard of it before probably.
1. 50% for needs — Allocate half of your income to essential expenses (housing, utilities, groceries).
2. 30% for wants — Spend 30% on discretionary expenses (dining out, entertainment).
3. 20% for savings and investments — Put 20% towards savings, retirement accounts, and investments
This approach helps balance spending and saving while encouraging responsible investment habits. Additionally, consider diversifying your investments and regularly reviewing your portfolio.