The 50/20/30 Rule for Money! ✨🍋

The 50/20/30 rule is excellent to follow for beginners with budgeting and for those who wish to follow a slightly less aggressive saving plan.

Say you make $800 on each paycheck.

50% of your income is $400. This is used on your NEEDS, like car payments, rent or mortgage payments, groceries, hygienic essentials, gym memberships, insurance, and any other bills that you are responsible for. Keep in mind, you must follow this rule PER paycheck.

30% of your income is $240. This is what you are allowed to spend out of your paycheck on wants, such as retail items, fast food, nail appointments, toys and gadgets, etc.

20% of your income is $160. This amount is to be pocketed per paycheck for savings!

This rule can at times be self-reflective. It’s an ideal setup for a lifestyle towards financial freedom. If this rule isn’t attainable with your current set of income, it might be wise to reconsider your work or begin brainstorming some side hustles. If you’re locked into your income for any reason, there are other ways to delegate these 3 metrics. You could follow a 70/10/20 rule, where 70% of your income is devoted to needs, 20% to wants, and 10% to savings. The options are endless - but saving is the most essential part. :)

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