Money Management Tips: When a person starts earning money, then expenses also start happening accordingly. Many times a person starts struggling with money crunch due to not being able to do proper management. In such a situation, he should follow the rule of 50, 30 and 20.
Money
Management Tips: For years, this saying has been going on that as
many sheets as you can, you should spread your feet. In fact, this is not only
a proverb but also the biggest mantra of the financial world. Almost everyone
knows about this saying, but they often do the opposite.
While spending many times, this thought comes in our mind
that what are the earnings for? Life is only received once, spend it freely.
Have fun, party, go somewhere far away with friends. This is where the sinking
of debt begins. Then whenever there is any problem in future and money is
needed, then there is zero amount in the name of saving in the account. If we
tell you that even after having all the fun, joking and partying, you can save
by following the formula of 50, 30, 20, then you will be thinking for once.
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What is the
50, 30 and 20 rule
Actually, when a person starts earning money, then expenses
also start happening accordingly. Many times a person starts struggling with
money crunch due to not being able to do proper management. In such a
situation, he should follow the rule of 50, 30 and 20. This means that the
person should pay three parts of his salary. 50 percent, 30 percent and 20
percent. He can spend 50 percent of the salary amount for his needs i.e. food
and drink, household and family. The other part i.e. 30 percent can be used to
fulfill his hobby, to show a film to the family or to travel somewhere etc. At
the same time, you can save the remaining 20 percent of the amount. If a person
saves even only 20 percent of his salary every month, then in a year there will
be enough money in his account. He can use it to avoid a sudden crisis in his
future.
Understand
by example
Suppose your salary is Rs 1 lakh per month. Out of that, you
can spend 50 thousand rupees i.e. 50% money in your monthly expenses and 30%
i.e. 30 thousand rupees can be spent in fulfilling your hobbies. The remaining
20 thousand rupees can be saved. If you save 20 thousand rupees per month for
one consecutive year, then you will save about 2 lakh 40 thousand rupees in a
year. This money will come in handy in your time of crisis.
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