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It is a budget rule to help people reach their financial goals. It states that:
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It breaks down your budget categories into three broad segments:
Under this method, 50 percent goes to expenses, 30 percent goes to wants, and 20 percent goes to a combination of debt and savings.
A person with a healthy amount of disposable income but loads of debt could probably benefit more from the 50:30:20 method.
With the 50/20/30 budgeting method:
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