Budgeting made easy with this new rule!
Learning how to manage your money might be difficult if you're new to budgeting. You need to plan, but you also need to decide how to spend your money, which requires some difficult choices.
A percentage-based budget, which distributes your monthly income to go toward your spending, savings, debt, and other categories you select, is a smart approach to keep things simple.
The 50/30/20 rule is one of the most popular percentage-based budgets. Spending 50% of your money on requirements, 30% on wants, and 20% on savings is the general principle. Find out more about the 50/30/20 budget guideline and decide if it applies to you.
Unfortunately, you can't include things like cable or Netflix in the "needs" category because you can actually live without them; they go in the "wants" category.
Nobody ever becomes wealthy by working for it. Yet even modest savings can help you accumulate wealth until you reach retirement age. I used to be a shopaholic and would purchase everything off the shelf from the market until I finally recognized what I was doing. I didn't have any money, not even for food, and my payday wasn't for several days. Then I understood that I couldn't consume further pillow covers, antiquities, or four more pairs of shoes. I later made my budgeting rule. Spend 50% of your money on necessities like food, bills, and other expenses. Spend 30% of your income on demands, such as leisure activities, and save 20% for future investments or other purposes, such as emergency funds. Even minor adjustments result in significant life impacts.