Simplicity - The budgeting rules are simple and easy to understand, so you won't get lost in the numbers when you're planning.Reevaluation - If your rent or mortgage is more than 50% of your take-home pay, it might be time to think about moving somewhere more affordable, or take a look at some refinancing options.There are a number of reasons you should try the 50/30/20 budgeting rule in your day to day life, including The main benefit of the 50/30/20 rule is that it gives you the chance to reassess your spending, but still gives you the flexibility to do what you want to do. What are the benefits of the 50/30/20 budget? The remaining half should then be split between 20% savings and debt repayment and 30% to your wants and entertainment.The rule says that 50% of your after-tax income must be spent on needs and obligations that you have to meet, such as rent and utilities.The 50-30-20 budget rule is a simple budgeting plan to help people achieve their financial goals.20% Savings - Your savings include any and all savings you are setting aside, such as your emergency fund, extra repayments and goal savings.30% Wants - Your wants are things that generally make your life more enjoyable, but are not necessities, such as phone bills, dining out, that morning coffee and other entertainment such as gigs, after-work cocktails and brunches.This can also include debt repayments, such as credit cards or loans. 50% Needs - Your needs are your everyday expenses and the essentials you need to live, such as food, rent, utilities, healthcare and transport costs. ![]() Using this budget, your monthly income is split into three categories needs, wants and savings. ![]() The 50/30/20 budget is a great budgeting tool for beginners that gives you an easy framework to work from.
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