We are all worried about spending more than we earn. There are many reasons for this. But according to the 50/30/20 rule, you will now be able to save not only your money but also spend as needed. Let us know what this 50/30/20 rule is, so that you can use your money properly.

Necessary costs

We all have some urgent needs. Electricity bills, vegetables, children’s fees, etc. According to this rule, 50 percent of your earnings must be spent for these purposes. But keep in mind this is money that only needs to be spent.

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Spend according to your need

We all want luxury lives. In such a situation, 30 per cent of the money we earn should be spent for such needs, which we like. Watching movies, shopping for clothes, eating and so on. These are expenses we can control, so spend 30 percent of your earnings on these requirements.

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Savings and Investment

You should always save 20 percent of your earnings so that you don’t have to borrow or borrow in difficult situations. We can spend 20 percent of our earnings on projects like FD and health insurance. If we follow this rule, we will be able to save money for the future and spend according to our needs.