26/06/2021
Are You Ready to Save Your Salary? Have you found it super-duper challenging to set financial boundaries?
In a nutshell, itβs a spending plan where 50% of your take-home pay goes toward Needs, 30% goes toward Savings & Debt, and the remaining 20% on whatever you please (aka Wants). Ready for the full breakdown?
Needs (50%)
These are the must-haves: the things you absolutely need to get by in the day to day.
Examples: rent, utility bills, health insurance premiums, groceries, a mass transit pass, gas for your car.
Wants (30%)
This is the fun bucket: all the things you enjoy but arenβt necessarily essentials.
Examples: eating out, clothes, cool gadgets, money spent on hobbies, fiber optics internet, that Netflix subscription.
Savings & Debt (20%)
Here, weβre talking about all things related to savings and debt.
Examples: emergency fund, retirement account, debt payments, education (if parent) etc.
The 50/30/20 rule is a simple, golden approach that, when applied, can help you stay within your means and make sure and steady progress on your savings and debt payoff goals. Ready to get started? Letβs goooo!
