Budgeting can be a difficult skill to learn for most people. As humans, we have a natural tendency to value the present over the future. And so when we begin making money, we would rather spend it than save it.
A simple rule can help you begin to think differently. The 50/20/30 Rule (or 50/20/30 Budget) tells you to do the following:
- 50% of your income should go to essentials like food and shelter
- 20% of your income should go directly to savings or investment accounts
- 30% of your income is left over to spend on whatever you want
This is a general rule and will need to be adjusted based on your personal situation. Click here to read more.