The 50/30/20 Rule for Budgeting: A Simple Guide to Manage Money
Managing money is one of those skills that we all need but rarely get taught in school or college. Most of us learn about finances through trial and error, often making mistakes along the way. If you have ever reached the end of the month wondering, “Where did all my money go?” , you’re not alone. The good news is that money management doesn’t have to be complicated. There’s a simple budgeting method called the 50/30/20 Rule that can help you take charge of your income, reduce stress, and still enjoy life. Whether you are a student, a young professional, or someone managing a family budget, this rule can work for you. What is the 50/30/20 Rule? The 50/30/20 Rule is a simple budgeting formula that divides your income into three categories: 50% for Needs – These are the essential expenses you can’t avoid. 30% for Wants – These are the lifestyle choices that add comfort and enjoyment. 20% for Savings and Debt Repayment – This ensures you’re building a secure financial future. The rule ...