If suddenly after the New Year holidays your cash cushion has shrunk significantly, it’s time to think about how to replenish it in a short time. One of the most popular and useful methods is the “50/30/20” method. We’re talking about it.
According to this rule, income is divided into three groups: 50% goes to needs, 30% goes to entertainment and 20% goes to the piggy bank. The first category includes all mandatory expenses: renting an apartment, paying for gasoline or a travel card, healthcare, etc. food of course. The latter is what makes your life more enjoyable. For example, a new bag or going to restaurants with friends. You will definitely live without it, but it will not be as bright as you would like.
The remaining 20% of the budget is savings and investments. Within a year, you should collect the amount you can live on for six to nine months in case something happens, leaving you without any source of income.
Source: People Talk
Mary Crossley is an author at “The Fashion Vibes”. She is a seasoned journalist who is dedicated to delivering the latest news to her readers. With a keen sense of what’s important, Mary covers a wide range of topics, from politics to lifestyle and everything in between.
