Personal Finance Rule: The Rule of 50-50

[Nomad]

How much money you earn does not matter, how you manage your money actually matters. To manage your money you should follow certain financial rules, and one of the important rules for personal finance is the rule of 50-50. You need to maintain your life with 50 percent of your income and the remaining 50 percent should go toward retirement savings, emergency funds, investments, and long-term financial goals like property purchases or even going on a vacation.

 

[King Belieal]

I think the 50-50 model of financial management is a good model. It works for people that are able to plan their lives well.

 

[Kross]

I don't believe in all these financial models and rules. Just be sure that you have investments and savings.

 

[Suba]

I think making a budget with the 50-50 rule is not suitable for everyone, except for you and those who have a large income, so that 50% can cover all monthly needs, but for those who have just started working, of course it will be difficult to determine their budget rules, especially if they have to rent a place to live that is not cheap.

 

[Springtime]

I am basically following the 50-50 rule. 50% of my income is for my daily necessities. 50% goes to savings, investment.

 

[arunima25]

People propose different rules and they do give a good goal to start with. But one size might not fit all. Depending on the stages of life, your financial obligations and income, one has to set these goals. Do make sure that you save and invest for future. We had this rule working fine for initial few years of our marriage, but then financial obligations increased more than the income source increase ( blame the steep inflation). Now we are able to save less . But happy that we could do it in earlier years and that money is providing us a good cushion and stability right now.

 

[Augusta]

This should come as a common sense to people. The more you grow up , you need to build a solid financial life. Having a mindset like this can help