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.