Are you having financial difficulties and failing to save enough money? The 50-30-20 budget rule can certainly help you. It is an easy-to-follow plan that will assist you in meeting your financial objectives. Watch the video to learn how to put it into action and save more money each month.
In her book, All Your Worth: The Ultimate Lifetime Money Plan, Senator Elizabeth Warren popularized the so-called "50/20/30 budget rule" (also known as "50-30-20"). The basic rule is to divide after-tax income in half and spend it as follows: 50% on necessities, 30% on wants, and 20% on savings.
The 50-20-30 (or 50-30-20) budget rule is an easy-to-follow strategy for helping people achieve their financial goals.
According to the rule, you should spend up to 50% of your after-tax income on necessities and obligations that you must have or fulfil.
The remaining half should be divided as follows: 20% for savings and debt repayment, and 30% for anything else you desire.
The rule is a template designed to assist individuals in managing their money and saving for emergencies and retirement.
Americans have a massive amount of debt, totaling $14.9 trillion as of the third quarter of 2020.