![]() Your needs, which should be 50% of your income after your tax deduction, include basic utilities, transportation, insurance, groceries, and housing. 20% of income should be earmarked for savings and debt repayment.Keep your wants no more than 30% of your income.Spend 50% of your income on necessities.The idea is simple and straightforward and includes the following: One personal budget approach recommended by experts is the 50/30/20 rule. Budgeting is simple: Managing money gets a whole lot easier when you can track all your expenditures and savings.Thus, you can adjust as needed so that you do not overspend and are not forced to touch the money set aside for savings. It helps you be flexible: Once you know how to budget, you can adjust the amount spent in each category every month.It gives you a plan that is easy to follow and prepares you for the future. You decide how much you will spend in each category and know where your money is being spent. A personal budget is about opening up opportunities for using money and gaining more control of your life. ![]()
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