THE 50/30/20 RULE CAN AID A WORKING PROFESSIONAL TO BUILD THEIR FINANCES
In this new year many working professionals have resolved to make better choices regarding their finances. In order to change our circumstances we must change our habits. The 50/30/20 rule is very vital in enabling us to make better financial choices. Many times when some working professionals earn their salary they do not emphasize the rule and in the end they face financial deficits. The rule states that 50% should be spent on needs such as rent, food and medical. 20% of the income should be spent on savings and 30% on wants. With such a spending habit a working professional is likely to make better choices and avoid peer pressure. Many working professionals end up spending money based on the masses yet the financial journey is an individual one. We have witnessed sportsmen who used to earn a lot of money but ended up suffering in their retirement simply because they might have neglected this golden rule. This rule enables one to be disciplined and make better decisions in...