The financial rule "50/30/20" how to apply it and any other recommendations on how to be financially independent?

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  • 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.

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  • 6 months ago

    50 for spending, 20 reserve when in need and 20 for saving.

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  • Anonymous
    6 months ago
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