Beware of little expenses; a small leak will sink a great ship.
– Benjamin Franklin
Success is managing you money like a pro. Leaving pay check to pay check is quite common scenario for most twenty- something. Forever waiting for the next paycheck to arrive. Budgeting and saving seems rather impossible when you in such situations.
Every career girl needs to manage her money and built up her saving for the opportunities that may arrive unexpectedly. This is one of the most simple and functional rule that I follow. It has changed the way I save and it is quite practical and simple. The 50 – 20 -30 rule is about allotting 50% of your money towards your needs – 20% towards your savings – 30% towards your wants.
Your rent, monthly transportation cost, groceries and other utilities that are required every month would be included under your needs. 50% of your budget goes into fulfilling your monthly necessities which are mandatory.
Savings are very important you never know when you might need extra money. Planing and early retirement or an investment.Every month put aside 20% of your paycheck in a separate savings account save yourself from temptation. Put the money out of sight and out of mind. At the end of the year you will be surprised how much you were able to save with out much guilt and sacrifices. A little discipline with regards to money and budgeting goes a long way.
30% “Your wants”