50/30/20 Rule
The Associated Press found that two-thirds of Americans would struggle to scrounge up $1,000 in an emergency!
The 50/30/20 rule is "the ultimate money plan" that helps people break up what they're spending their money
What is the rule?
- Step 1: Figure out how much money you are pulling from your paycheck by deducting taxes
- Step 2: Divide your your money into three categories "Needs" (50%) "Wants" (30%) and "Goals" (20%)
- Needs: Rent, Food etc
- Wants: Gym membership, eating out etc
- Goals: 401k, Savings account etc.