Money Management: 50/30/20 Rule

a simple way to allocate your money properly

Photo by Sharon McCutcheon on Unsplash

Did you know? research shows that 66% of Americans do not set a budget for themselves, but setting a budget is important for long term-term financial health.

5 Reasons Why You Need Budget Allocation

• Helps you to keep eye on the prize
• Avoid financial issues
• Shed light on bad spending habits
• Happier retirements
• Prepare emergencies

50/30/20 Rule to Allocate Your Budget

50/30/20 Rule requires you to divide your money into 3 categories, your essential NEEDS, WANTS, and SAVING & INVESTMENTS

NEEDS 50%

• housing
• food
• transportation
• medical
• expenses
• essential debt

WANTS 30%

• restaurants
• vacations
• entertainments
• fashion
• electronics
• concert

SAVING & INVESTMENTS 20%

• emergency fund
• stocks/ETF
• funds
• rental property