First, 50/30/20 is meant to be applied after income taxes. As for the 50% needs, it's meant to represent expense that you must spend. For example, you need to pay that mortgage to keep the house, but you can probably skip that cup of coffee at Star Bucks. Some of the expense can be a gray area. Yes, you need to buy grocery but might not need to spend as much.
It is mostly a guideline to follow if you can. It's important to keep your needs to a minimal. For example, don't buy too much house, don't buy a car you can't afford to payment on. The 20% savings is probably the easiest. Note that for some people, they might not make enough money to do 50/30/20, so just do your best. Do 50/20/30 if you can or better yet 20/30/50.
It is mostly a guideline to follow if you can. It's important to keep your needs to a minimal. For example, don't buy too much house, don't buy a car you can't afford to payment on. The 20% savings is probably the easiest. Note that for some people, they might not make enough money to do 50/30/20, so just do your best. Do 50/20/30 if you can or better yet 20/30/50.
Statistics: Posted by gavinsiu — Mon Jun 24, 2024 12:06 am — Replies 13 — Views 1305