Money Savings: Does your bank balance reach the verge of ending every month? Do you want to save money, but fail every time? If yes, then there is no need to worry. It is possible that some of your daily habits are the root cause of this problem. The good news is that by making a little change in these habits, you can easily increase your savings. You can follow the rule of 50, 30 and 20. Know what it is.
How to save using the 50-30-20 rule?
According to the 50-30-20 rule, you have to divide your salary in the ratio of 50-30-20. This rule says that 50 percent of the salary should be taken out for all expenses. At the same time, you can use 30 percent of the money for your hobbies. Like watching movies, traveling somewhere, etc.
Not only that, use 20% of your salary for saving. If you want, you can spend 30% of your money on saving and 20% on your hobbies. You can invest half of this savings money in a secured platform and the remaining money in an unsecured platform like mutual funds.
Understand with example
If a person’s salary is 30 thousand rupees, then he can spend 50 percent of his money i.e. 15 thousand rupees on his expenses. Apart from this, spend 30 percent of the money i.e. 9000 rupees on your hobby or buy any item of your choice.
Along with this, you can save 20 percent of the money i.e. Rs 6000. Out of which Rs 3000 can be invested in mutual funds and the remaining Rs 3000 in FD.