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The Power of Perseverance page 1
The Bizarre History of the Bursting Teeth
Pampering and Passion Post-Breakup page 2
The Women’s Guide to Divorce Costs
Vegan Greek Sheet Pan Dinner page 3
Why You Should Use the 50/30/20 Rule page 4
BETTER BUDGETING THE BENEFITS OF THE 50/30/20 RULE
WANTS What good is life if you can’t enjoy yourself? The rule says you should apply 30% of your after-tax income toward your wants. This portion can be spent on everything from tickets to see your favorite sports teams, a premier “Jurassic Park”-themed pinball machine, or eating out at a restaurant. However, it should only apply to things you want to spend money on immediately — not long-term investments. SAVINGS The last 20% is the money you save for a rainy day. It can be cash you are saving for a dream vacation, money invested in a 401(k), or simply put into a savings account. Any long-term investment you make will fall into this category.
For many people, getting the most out of their hard-earned money can be a challenge. Thankfully, the 50/30/20 rule is here to help! This simple budgeting rule is straightforward, easy to remember, and useful (if you stick to it). According to the rule, you should take 100% of your after-tax income and allocate it in three different ways: 50% for needs, 30% for wants, and 20% for savings. For more on how to use the rule, read on! NEEDS Half of your money should be put toward necessary expenses: groceries, utility bills, health care expenses, loans, mortgages, and other payments. However, you may need more than 50% of your money to cover your mandatory expenses, and the remaining money should be split between wants and savings as evenly as possible. Your needs could also require less than half of your after-tax income. In this case, use the leftover money to pay down loans and debts so you will have more money to dedicate to savings and wants in the future.
While the 50/30/20 rule is not an exact science, it is worthwhile for budgeting your money responsibly and equitably!
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