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  • Writer's pictureWiseWallet

Wise Wallet Wisdom: Start Your Budgeting with the 50/30/20 Rule


What?

Have you heard about the 50/30/20 rule for budgeting? It is a simple method that divides your after-tax income into three segments: 50% for essential needs, 30% for personal wants, and 20% for savings.


So What?

It's an ideal approach for anyone seeking a simple yet effective way to manage money. By categorizing your expenses, you can easily track where your money goes and make smarter financial decisions.


Now What?

  • Identify Income - Start by determining your monthly after-tax income.

  • List Expenses - Catalog your expenses into categories: 'needs', 'wants', and 'savings'.

  • Allocate Funds - Align your spending with the 50/30/20 rule—50% needs, 30% wants, 20% savings.

  • Adjust Regularly - Review and adjust your expenses periodically to stay on course.


Embrace the 50/30/20 budget rule for a fuss-free approach to handling your finances. It’s a wise step towards a balanced and stress-free financial journey.


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