How to manage your money (50/30/20 rule)

How to manage your money (50/30/20 rule)

HomeMarko - WhiteBoard FinanceHow to manage your money (50/30/20 rule)
How to manage your money (50/30/20 rule)
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Channel Avatar Marko - WhiteBoard Finance2019-05-13 23:30:02 Thumbnail
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In this video I provide a high-level overview of how to manage your money using the 50/30/20 rule.

Money management is 90% discipline and 10% knowledge. The 50/30/20 rule will force you to create a budget and understand where each of your dollars goes after tax.

50% of your budget should be spent on necessities that are essential things in life and that you literally cannot do without.

30% should be spent on desires that could be classified as things that bring you joy and happiness, but are NOT essential to life. (Restaurant dining, entertainment, leisure, etc.)
The remaining 20% should be spent on saving, paying off debt, and planning for retirement.

I feel like a lot of people confuse wants and needs, and we know the difference deep down, but we really want the one we don't have the self-discipline to say no to.

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