Basic Of Budgeting: 50/30/20 Budget Rule

For someone who is a total “NOOB” to budgeting, the 50/30/20 rule is a quick go-to formula to help you kick start the journey on salary allocation.

For those who are not sure of what the 50/30/20 budgeting rule is about, here’s a quick recap.

Percentage Allocated Where Is It Allocated To? What To Spend On? 50% Needs Groceries
Housing
Utilities
Health Insurance
Payment for transport
Daily Necessities 30% Wants Shopping
Dining Out
Hobbies 20% Savings Savings

This budget allocation rule may be a simple guideline, but it is not elaborated nor does it take into account all the various circumstances which an individual is in.

Or as how one of our Seedly Personal Finance Community member, Zhirong, puts it, “A lot of advice is piecemeal rather than a journey”. He can’t be more right!

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