Savings are ensured by applying the 50/20/30 rule taught by economics professor Elizabeth Warren.
In times of economic crisis, we all take small precautions to try Save as much as possible. Eliminating unnecessary expenses is, of course, the first approach to saving that everyone knows. However, when the current account is close to turning red, the actions to be carried out must be more decisive, orderly and heavy. In this regard, it is good to let yourself be guided by the advice of those who know about economics and have Study the strategies carefully To be applied daily to reduce spending as little as possible.
The 50/20/30 Rule of Organized Saving
No improvisation but An organized study of expenses, This is the basic advice behind Elizabeth Warren’s 50/20/30 rule. The economics professor decided to develop and suggest specific saving strategies to help those who do not have enough income to keep their checking account alive.
Warren’s judgment relates to determining accurate proportions to carry out economic activities. 50% of the monthly income should go to Necessary expenses Which can not be postponed purchase. We’re talking about mortgage or rent installments, paying users, buying groceries and personal and household hygiene and paying insurance or car tax.
Intends to use 20 of the proceeds
Professor Warren’s reasoning continues in the percentage of 20% of the monthly income. This ratio should be used to fill in provident fund In a way that provides liquidity to cover sudden expenses or debts to be paid. Unplanned breakdown of a device or device failure is one of the most common events that creates many difficulties for many people. Save these flaws It’s for sure Which will allow you not to put your hand on the checking account.
The last percentage, dedicate to leisure
With the aim of saving Warren, no earmarked percentage of monthly income can be missing for leisure , Health and interaction with others. Man was created to be with others, to have fun and break away from the home/work routine. It is not recommended to deprive yourself of any activity that allows you to free the mind and rejuvenate the body. Therefore 30% of the proceeds It can be used for dinner with friends, for physical activity, for a weekend getaway, or for expenses related to a hobby that can’t be used And don’t give up.
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