What Is The 50/30/20 Rule - Deepstash
What Is The 50/30/20 Rule

What Is The 50/30/20 Rule

The 50/30/20 Rule is a famous budgeting strategy that divides your income into needs, wants, and savings.

According to this rule, you should need 50% of your income to live your life. You may dedicate 30% of what you gain to buy things you wish. And you should save the remaining 20%.

  • 50% Needs: rent, groceries, utilities, and essential living expenses.
  • 30% Wants: dining out, entertainment, fashion clothes and devices, and non-essential purchases.
  • 20% Savings: investments or other savings.

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cosminangheluta

Passionate about self-improvement, personal growth, finance, and creativity. I love to inspire people to become the better version of themselves. Author @ www.cosmopolitanmindset.com

Stop Wasting Money: Master the 50/30/20 Budget Rule for Financial Freedom – Simple Steps to Take Control of Your Finances, Save More, and Achieve Your Long-Term Goals

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The 50/30/20 Rule

The 50/30/20 Rule

It breaks down your budget categories into three broad segments:

  • 50%: Essential Expenses like housing, automobile expenses, groceries, insurance, utilities, etc.
  • 30%: Discretionary Expenses (Non-essential) like Dining out, entertainment, drinks, etc.

The 50-20-30 rule

The 50-20-30 rule

It is a budget rule to help people reach their financial goals. It states that:

  • You should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do.
  • The remaining half should be split up between 20% savings and debt repayment and 30% to ev...

The 50:30:20 budgeting method

The 50:30:20 budgeting method

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.

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