30/03/2022
How To Spend Money When You Are In Your 20s โ 40s? ๐ค
Here is a simple structure to it. It is broken down into the 50/20/30 rule, which is:
๐๐ป AT LEAST 20% - should go towards a Financial Foundation. This means, life insurance, emergency funds, retirement fund, child savings accounts and any other form of UNTOUCHABLE long-term savings. This is because that money is for your future. It's your fallback money, money you never touch, till you reach an age where you cannot work anymore, and this is the money that you fall back on.
๐๐ป NO MORE THAN 50% - of your earnings should be going towards your BASIC NEEDS. These are your essential expenses which are your rent, utility bills, groceries, etc.
๐๐ป THE REMAINING 30% - is for the expenses you choose, to create comfort and enjoyment in your life.
Once you start living with this rule where you force yourself to spend the 80% you will reach a point in life where you believe you will not be able to spend any more of it. And that's when your savings ratio will increase.
Remember, a penny saved is a penny earned! So budget yourself, do the mathematics and start saving AT LEAST 20% of whatever you earn from now to have a better future. Or else youโre certainly heading for trouble or even worse, itโs sad to say that youโre already up the creek without a paddleโฆ
Speak to our Financial Advisor today to know more about how you can put 20% of your savings towards a Financial Foundation smartly! ๐ฏ
