Not sure where your money goes but equally unsure how to create a budget, then the 50/30/20 Rule is a great way to get started on your savings journey!
Here’s how it works:
? Spend 50% of your income on needs (living expenses/essentials)
? Spend 30% of your income on wants (discretionary spending)
? Spend 20% of your income on savings
The 50/20/30 rule gives you a chance to reevaluate your budget in a different way. For instance, if you find out that your rent or mortgage alone is more than 50% of your living expenses, it may be time to reevaluate your living situation. You may want to consider renting in a more affordable area of town, or in the case of a mortgage, have a look at your refinancing options. Or perhaps it may reveal that you’re spending much more on your wants than your needs, and it’s time to cut down on some unnecessary spending – it happens to the best of us!
Sometimes evaluating your finances from a different angle can give you a new perspective on what’s necessary and what’s just nice to have. Plus, the frame work is relatively simple to follow and allows for some flexibility, so you can make it work for your individual situation.
If you’d like to discuss your options with us directly, call (03) 9133 5565 or click the “Book a call” button below and we’ll contact you when it’s convenient for you.