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The 50-30-20 Rule of Budgeting

The breakup for your monthly salary should look somewhat like this:

 

1. 50% of the salary should go into necessities like rent, bills, EMI, groceries etc.


2. 20% of the salary should be either saved or invested


3. 30% of the salary should go into miscellaneous expenses like dining outside, online shopping etc.

 

 


 

 

The 50-30-20 division is globally propagated as the balanced way for creating savings.


50% for essentials like rent and food,


30% for leisure or discretionary spending and


20% savings

 

Now this is a general rule because there are a lot of variables that come into play for saving regularly and savings can only happen when the basics have been met with.

 

 


 

 

 

The 50 30 20 Rule of Budgeting

 

 

 

The 50 30 20 Rule of Budgeting

 

 

The 50 30 20 Rule of Budgeting

 

https://www.thebalance.com/the-50-30-20-rule-of-thumb-453922

 


The 50 30 20 Rule of Budgeting

 

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Categories : Finance    Themes : Buy and Hold Investing
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