Although the salaries are very low and the expenses are very highwe have to find a middle ground to be able to live, enjoy and to save. When we talk about savings, it seems like a myth, right? So it is possible to have money to save, to subsist and to enjoy your recreation. You will only need to know this rule and all yours financial concept change to.
If you are not a machine of the financesdon’t worry because this rule is simpler than you think and by doing 3 calculations you can discover how to live better and without so many headaches. Manage your money it has never been so simple. We introduce you the 50/30/20 rule.
This rule is very basic and adapts to each person
First of all, we need to separate our account into three parts:
- Basic needs
- Leisure, desire…
- savings
Next, we need to know the salary net, monthly If, for example, we start from minimum interprofessional salary of 1,080 euros gross per monthdoing the calculation we would have some left 870 euros nets, about. From this amount we have to make three calculations, one for the basic needsthe other for leisure or desires and the last for savings or for pay off debts.
The basic needs
Him the earmark 50% of our earnings to cover basic needs to survive: food, clothing and household expenses. To make this calculation is as simple as dividing our net salary in half. This 50% will serve for pay the rent, the bills of the light and the gas, the transport, the insurances (medical, transport or pets) and basic purchases. That’s how we should allocate 435 euros to these expenses.
Leisure, desire…
30% of our salary, we must allocate it to whims. This percentage is calculated from the net salary, not from the remaining 50%. So, we could allocate 261 euros to go out to dinner, go to the cinema, go on holidayPay the Gympay Netflix…
savings
The remaining 20% would be left to save. In this case we would have 174 euros to save every month or for unforeseen events or debt repayments.
Although, we know that the current expenses are very high and with these salaries it is very difficult to become independent, if we are two people or have a higher salary, we can try to do this rule of 3 and it really gives spectacular results. This rule has its origin in the book “All Your Worth: The Ultimate Lifetime Money Plan” d’Elizabeth Warreninsolvency expert of theHarvard University and US Senator.