La forma más fácil de descargar videos y galerías desde la aplicación Lemon8
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If you are wondering what these numbers are all about… let me explain.
For some context, the 5/3/2 rule is a simple budgeting guideline that suggests allocating:
- 50% to Expenses
- 30% to Short Term Savings
- 20% to Insurance & Long Term Savings
And while this rule can be a helpful starting point for people looking to create a budget…
It does have a huge drawback.
It’s too generalized and vague.
Some people allocate the full 20% to insurance and don’t think about their long term investments and vice versa.
Some even end up using the full 30% of their short term savings on vacations/shopping when it’s supposed to help them accomplish their short term goals.
And that’s why, the 4-2-1-2-1 method that I’ve learned is WAY better that I even adopt this approach for my clients’ financial planning.
As usual, swipe left to get more financially savvy ;)