Art of Work
Art of Work

@Art0fWork

7 Tweets Oct 12, 2022
50/30/20 Rule
Your simple Guide to Massive Money
FINANCIAL NEEDS
Your needs are:
* Utilities
* Housing
* Transportation
* Good, water and clothes
Keep your needs at 50% of your total net income
FINANCIAL WANTS
Your wants are:
β€’ clothing that isn’t essential
β€’ dining out or ordering take out
β€’ hobbies, traveling, large house, and new expensive car
Just because you want it doesn’t mean you need it
Budget your wants within 30% of your monthly net income
SAVINGS
Pay yourself every month towards:
β€’ retirement or long-term savings
β€’ short-term savings for a new car or vacation
β€’ emergency funds of 6-12 months of living expenses
Put 10% of your net income towards savings each month
DEBT
Paying off your debt should be a priority.
Do so in the following order:
β€’ high interest credit cards
β€’ high interest or unsecured loans
β€’ all other monthly liabilities, such as student debt, mortgage, etc
Put 10% of your monthly net income towards your debt
BUDGETING
Create a budget for yourself every month
β€’ keep track of all your income
β€’ split your income using the 50/30/20 rule
β€’ be aware of your spending habits and cut back
Your budget will be your guide towards the financial freedom you seek
If you enjoyed this thread, please:
1. Follow me (@Art0fWork) for more
2. Retweet the 1st tweet below to share this thread

Loading suggestions...