50/30/20 Rule
Your simple Guide to Massive Money
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
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 isnβt essential
β’ dining out or ordering take out
β’ hobbies, traveling, large house, and new expensive car
Just because you want it doesnβt mean you need it
Budget your wants within 30% of your monthly net income
Your wants are:
β’ clothing that isnβt essential
β’ dining out or ordering take out
β’ hobbies, traveling, large house, and new expensive car
Just because you want it doesnβt 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
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
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
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
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