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Good money management is the key to financial stability. The first step to improve how you manage your money is to create a budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful. - PowerPoint PPT Presentation
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Budgeting – 50/20/30 Rule
Good money management is the key to financial stability. The first step to improve how you manage your money is to create a
budgets. Budgets could be difficult, but the 50/20/30 rule could be helpful.
The 50/20/30 rule states that you should set aside a specific part of your income for different aspects of your life.
• 50% - Fixed Expenses• 20% - Financial priorities• 30% - Variable expenses
Fixed Expenses• Fixed Expenses are monthly
expenses that you have no control over and have a commitment to pay each month.
• Fixed expenses include• Rent• Food • Bills
Financial Priorities
• Financial priorities are things that could help you to become financially stable or independent in the future.
• Financial priorities include:• Saving for Retirement• Repaying Debt• Creating an Emergency Fund
Variable Expenses
• Variable expenses change from month to month and are not necessary to living.
• Variable Expenses include:• Eating Out• Entertainment• Hobbies
