Do you spend it thinking that money is not enough for you? you never get to the end of the month when you are taking out a loan or a credit product? If these things happen to you, you should carry out an analysis of what you are doing with your money. I know that very few people like to analyze, plan, write down expenses. It happens that we do not know where the money will go, while applying a rule that helps you keep control of your budgets, instead of dividing your money into several categories, you will divide it in 3 ways the 50/30 rule / twenty.

Perhaps he will ask you what this rule of numbers is, the first is 50%, the second 30% and the last 20%, each of these will be the percentage of your fixed income, where the first will cover your needs, the second savings, debts or investments, the last wishes.

Suppose that our net income is $3000/month, we divide it into three parts, 50% would be $1900, the second $900 and the third $600. Now we break it down

Source

50% Needs

Here we are going to include all the expenses of our household needs, food, our transportation to be able to move around (own or public), basic things such as clothing or others, for health expenses, the payment of public services. Knowing that covering our expenses with 50% of our salary is somewhat difficult, especially earning a minimum salary, but when we arrive and earn it, it becomes easier to do this routine, if we start with this rule from the beginning we can maintain control, like this tomorrow we will start anar more our money we will be able to know how to manage.

30% Savings, investment and debts

I know you will say that 30% is a very high percentage for savings, investment or payment of debts, but if we want financial freedom tomorrow, we must sacrifice a little, 'to start having that freedom that so many of us want, we must keep in mind that we must get out of debt, so in this category first is to cancel our debts, and then save the last step is to invest that money, so that tomorrow we can have another income, or make our financial mattress, which will help us in our old age, when we can no longer continue working we have our old age assured, since we will not be young all our lives, we must plan.

20% Wishes

In this will go all those expenses that are not necessary to live but bring a certain level of comfort and happiness to our lives, here we can include expenses such as going out to dinner, entertainment, internet, vacations, gifts, changes of electronics such as cell phone, television or any another item that you need in your home, this rule allows us to include our wishes in our expenses, not only that we limit ourselves to savings or investment but that we can give ourselves our expenses.

These rules are some indicators that will help you distribute your money, but if you need a little more for your expenses, you decide if you do it in equal parts, acquire it from the percentage of your wishes and savings, or take it from one side, but You must take into account that if you want financial freedom, you must try to take control of your life, you must save and invest, it is a good way for your money to work for you.

What method do you use?

Posted Using LeoFinance ^Beta