From the perspective of long-term financial well-being, sticking to a financial plan is important.
Budgeting is always a challenging task with a three way pull between necessities, luxuries or wants and investing for financial security.
Senator Elizabeth Warren popularised the '50/20/30 budget rule' (sometimes labelled '50-30-20') in her book, All Your Worth: The Ultimate Lifetime Money Plan (originally published in 2005).
According to this thumb rule:
50 percent of the earnings after tax should be used towards necessities.
30 percent of the money should be spent on luxuries or wants / desires.
20 percent money should be saved and invested towards your financial goals.
Budgeting is always a challenging task with a three way pull between necessities, luxuries or wants and investing for financial security.
Senator Elizabeth Warren popularised the '50/20/30 budget rule' (sometimes labelled '50-30-20') in her book, All Your Worth: The Ultimate Lifetime Money Plan (originally published in 2005).
According to this thumb rule:
50 percent of the earnings after tax should be used towards necessities.
30 percent of the money should be spent on luxuries or wants / desires.
20 percent money should be saved and invested towards your financial goals.
