I read with interest this article on Sunday Times today on the 53 important points about personal finance.

There are few points which I think are absolutely critical to one’s financial well-being, especially for beginner anyone or working adults just started on his investment/financial journey.

11 – The 50/20/30 Budget. A budgeting guideline that suggest spending 50% of income on living expenses and essentials; 20% for financial goals like savings and investments; 30% for discretionary spending.

I feel that 20% for financial goals is actually too low. If one is serious about growing wealth, one should place protection and investment as top priority. Why not inverse the percentage allocation to 50% wealth building, 30% living expenses and essentials, 20% discretionary spending?

Of course this is just a guideline, and no guideline will suit every individual’s lifestyle, life circumstances etc. So its really up to individual to make necessary adjustments …