How To Manage Your Money (50/30/20 Rule)
Updated: Sep 3, 2022
Good money habits are all too often not taught until later in life. But, we all want to know how to manage money.
If you want to learn a proven strategy to manage money better then this video is for you!
In this article, I present a detailed look at how to manage your money using the 50/30/20 rule. The 50/30/20 rule will force you to create a budget and have a plan for your money.
Personal finance is 90% discipline and 10% knowledge. A proven financial plan is the best way to improve your discipline to win with money.
Starting with your take-home pay (net income after taxes):
50% of your budget goes towards needs, which are things that are essential to life and you absolutely cannot live without. (housing, taxes, transportation, utilities, food, and health)
30% of your budget goes towards wants, which are things that you would like to have but you can live without even if you don't want to. (entertainment, travel, beauty, shopping, hobbies)
20% of your budget goes towards savings, which are things like your emergency fund, debt, and retirement savings.
In this video, you’ll learn about the 50/30/20 rule and how to successfully implement this type of budget into your personal finance routine to improve your financial wellness.
Based on my 20+ years of experience working behind closed doors with clients I have a feeling that folks will confuse needs vs. wants. I dive deep here to make sure that you know the difference between needs and wants and how important it is to not mix the two in your budget.
The hardest part is getting started. But what do you have to lose?
Decide enough is enough and go for it.
IT'S YOUR TURN
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“The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and then starting on the first one.” - Mark Twain