50-20-30: we distribute our income correctly
Everyone knows that at the moment our vast country is not going through the best period during its existence. Unfortunately, there is no news yet that the economic situation is stabilizing. Actually, that is why we decided to tell you, our dear readers, about how you can improve the flow of profit. After reading this article, you will learn a few rules and secrets, thanks to which you will spend much less money.
Many people think that high wages are an indicator of stability. However, according to statistics, not all people who receive above average salaries have at least some savings.
We only want to say that even those people who do not receive high enough wages can afford anything they want if they have patience.
In order to achieve such a result, you just need to develop a rule that you will follow every day. Fortunately for all of us, such a rule already exists and a large number of residents use it, thanks to which they are gradually approaching their goal.
So, we turn to the main topic of the conversation and advise everyone who reads this article to be more careful from now on so as not to miss important information. The 50-20-30 rule is a way by which you will be able to stabilize the flow of profits in the near future and acquire what you have long dreamed of. We can say that this rule is just an ordinary example of how to properly distribute your own profits.
How to distribute wages following the 50-20-30 rule
Ever since the American Alexa Von Tobel invented this rule, many have adopted it and are still using it.
The 50-20-30 rule suggests the following:
· 50% of each salary should be used as payment for daily expenses. That is, it is recommended to allocate money from this amount for the purchase of clothes and food, as well as for utility bills;
· 20% – this is the amount that you need to regularly put aside in a "long box" so that you will soon have your first savings;
· 30% of the salary should be used for various entertainment and the purchase of those things and items that are not particularly important.
However, as practice shows, not every average worker can adhere to this rule.
The fact is that some of us are forced to pay off loans, the monthly payment of which exceeds fifty percent of our wages. Thus, it is safe to say that the 50-20-30 rule is the ideal income and expense planning strategy that everyone should strive for.
Now that you know everything there is to know about the 50-20-30 rule, we’d like to give you some tips to make life a lot easier:
Tip #1: Money loves an account
In order to improve the financial situation, you need to learn how to count money and control yourself. That is, if you want to understand how much you spent this month, you need to write down each purchase, and at the end of the term, sum up each spending.
Thanks to this simple solution, you will be able to understand where you spend the most money and, of course, reduce these costs. The same can be done with daily expenses, as well as with weekly expenses. As soon as you learn how to count money and distribute it wisely, you will be one step closer to the 50-20-30 rule.
Tip #2: Don’t keep your savings under your pillow
We think that many of you, our dear readers, have long begun to put aside a certain amount in a piggy bank in order to soon acquire what you have been dreaming of for so long. If you follow the rule in question, then you regularly set aside twenty percent of your salary in this very piggy bank, constantly increasing its reserve.
In order for the money not to lie idle and lose its value, we strongly recommend that you open a savings account in a bank.
By depositing your savings in a banking institution, you will not only stop worrying about the safety of money, but you will also regularly receive a good percentage. Suppose you receive a salary equal to thirty thousand conventional units per month. Following the 50-20-30 rule, put aside twenty percent, that is, six thousand conventional units, in a piggy bank. Thus, after a year of hard work and savings, you will have 72,000 conditional units. And if you open a bank account and save the same amount, a year later you will have about four thousand conventional units more.
Tip three: control costs and do not buy too much
We have repeatedly repeated that it is necessary to be able to control income and expenses in order to stabilize the financial situation. Unfortunately, according to statistics, most citizens of a number of countries spend much more than they earn. The fact is that at the moment almost everyone is bogged down in loans. Of course, this can lead to complete bankruptcy, because life is an unpredictable thing. And, if you do not want to live paycheck to paycheck, we strongly recommend that you find out what you spend the most money on and redistribute expenses to avoid unnecessary spending.
Once you learn to save on non-essential items, you can increase the size of your piggy bank by putting much more money into it each month.
Summing up, I would like to remind all citizens that by denying yourself something, you get money that you no longer counted on. Thus, if you bought a used TV instead of a new one, you have free money that you can spend on something more valuable, or put it in a piggy bank.