The financial rule "50/30/20" how to apply it and any other recommendations on how to be financially independent?
- 6 months ago
Here is an example of how 50/30/20 rule can be applied.
Let's say your total paycheck per month is $3,500. According to the 50/30/20 rule, you can spend $1,750 on your 'needs' per month. These expenses make 50% of your paycheck after-tax income.
You can spend $1,050 on your "wants" that are 30% of your paycheck.
And $700 left are that last 20%. You can save them for an emergency or pay down on debt.
- Adullah MLv 76 months ago
50 for spending, 20 reserve when in need and 20 for saving.
- Anonymous6 months ago