If you are looking for a method to manage your budget easily, the rule 50/20/30 will provide with you a special basement to help you find the priority and allocate your sources reasonably.
How does this rule work?
It will divide your income into 3 parts as follows:
50% of your income for necessary purposes
Obviously, basic cost is all you have to spend whenever and wherever you live including food, rent, basic bills or any plan in the future you may have.
Give your best shots to make it below or at maximum 50%. But if it exceeds 50%, try to limit the money you have to spend for bills. The worst thing happens is that you must cut down the expenditure in the 2 other parts.
20% of your income for finance purposes
The next step is save 20% income for savings, debt paying and other finance problems in the long- term. Remember the earlier you set aside, the more comfortable your life will be.
30% left for Personal expenditure
This last part and main element to make difference in your budget, trivival cost. Some financial experts assure that this is flexible cost and you can control it. Actually, it also depends on your current personal condition but in fact, 30% is the finest choice for entertainment, travelling, shopping and other hobbies. If you leave this part lessen, you may get trouble with red account.
Establish good habits will ensure your happy and secure life in the long run. It is not how high imcome you get but how you behave with.
However, this rule50/20/30 can be except for some, It just leads you to a flexible ways for your finance management, you can change the percentage up to your priority.