Sometimes when creating a budget and trying to stick with it you realize a certain commodity has been left out, it could be an essential one.

If you have no Idea where to start when trying to create your budget, you may start with the 50:30:20 Budgeting rule.

The Rule was popularised by US Senetor Elizabeth Warren in her book ("The Ultimate Lifetime Money Plan")

The Rule asks you to break your monthly net income into three parts

1. Essentials - 50% - needs 2.Wants - 30% - personal desires
2. Savings - 20% - also goes into investing

This way you can use your money for everything and operate without going beyond the set limit of each bucket.

You need a sense of discipline while simultaneously ensuring you neither compromise your quality of living not plans for the long term needs.

UnaAPPLY aje hii rule 👇👇

1: Essentials- 50%

This includes :- Rent/Mortgage , food , transportation cost ,utility bills

2: Wants - 30%

This one that can make a lot of difference in your budget , is unnecessary expenses. Hizi Ni zile za Lifestyle.

These are the luxuries

3. Savings -20%

This may include :- savings plans , debt repayment, emergency funds

Hii ndio "get-ahead category"

#SisiNiMESH #Tujijenge