Community Tip #3 - The 50/30/20 Rule
Instagram Handle: she.talks.blue
Age Range: 26
Location: Mumbai, India
Do you consider yourself a saver, a spender, or a little of both ?
I would consider myself a bit of both
Care to share a milestone you are proud of? Celebrate your wins!
I have always read about the importance of an emergency fund, but never really started saving towards it. With the covid-19 outbreak this year, I realized the significance of doing this and began saving. As of today, I have built up a 4-month emergency fund!
Share a lesson you've learned and a tip you would give others:
I have religiously followed the 50/30/20 budgeting rule from the day I started earning income.
For those who don’t know what it is, here is a breakdown:
50% of all after-tax income will got towards needs
30% will go towards wants
20% will go towards saving and investing
It's a simple rule to follow and it's helped me stay on track with my finances.
**This budget can be adjusted to your needs as you see fit. Think of it as a template.
What do you consider to be the worst financial advice you've gotten?
My family members have always advised me not to invest in stocks. While investing in the stock market has its risks, they don’t have the same long-term strategy and risk tolerance when making investment decisions. Everyone’s experience and journey is different.
Special thanks to @she.talks.blue for the tip! Check out their instagram here.