The 60/20/20 Budget Rule

The 60/20/20 rule

Managing your money can be hectic. Multiple budgeting methods exist, yet the 60/20/20 rule is unique for its effectiveness. Best budgeting guideline i use to get my money in order.

60% for Fixed Costs : Includes all fixed costs, such as housing, utilities, groceries, transportation, Loan payments etc. (All costs necessary to keep the lifestyle running)

20% for Savings & Investments : includes emergency fund, retirement fund, vacation fund, building a fund for business or investments. NB :- Real wealth is created via investments.

20% for Guilt Free Spending : includes all discretionary spending. May also include dining out, travels, movies, & other non-essential purchases.

Through this approach, individuals get to focus on essential expenses and balance their spending and prioritizing financial goals while enjoying their rich life.