Manage Your Money - Jack Finances

 

 Manage Your Money - Jack Finances

 50-30-20 Rules:-

             This rule defines your needs, wants, saving & Investment. These rules will teach you how to use your earning and improve your life.

                     Here, the 50% defines as per needs of people, 30% defines as wants, the rest of 20%  is an important and useful rule which defines your future planning or saving and investment.

  

           Let us discuss in detail:-

1:- 50%  :- Basic Needs 

         -Basic needs are the thing that we need daily in our life, forex the food to eat, home rent, daily transportation for work, school, college, this is the basic need.

Some more basic need is electric bills, water to drink, mobile phone 

Petrol, internet.

The basic need is the thing that we use daily in our day to day life, the thing that we need which makes it easy to live.

 2:- 30%  :- Wants   

             - What is wants? how it works? There will be many questions in your mind so I will explain to you what is wants, Wants is the thing that we do for fun. For example:- Going on vacation, Party, Cars, Expensive clothes, etc are the wants.

Everyone needs a vacation or to have party etc for that you need to save money from your salary or saving just keep it like 30% for wants that will help you, and the rest of the 20% save to invest.

  3:- 20%:- Savings and Investment

             -20% is saved to invest. A 20% rule is an important rule for saving and properly investing your money.

For example:- Saving  for retirement, investing in Share Market, Mutual funds, or in the Fixed Deposit (FD), Recurring Deposit (RD),

ElSS, etc.

20% rule will help you grow more wealth if you start saving your money at a very young age.

 Manage Your Money - Jack Finances

Books:-

Think and grow rich book:-https://amzn.to/35HQhWt

The Intelligent Investor :-https://amzn.to/2Wek8CT