The 80/20 Rule of Personal Finance

[Nomad]

One of the most popular personal finance rule is the rule of 80/20. The rule states that you need allocate 80 percent of your total earnings to your all expenses, including rent, utility, loan repayment, etc. and you need to save the remaining 20. If you cannot maintain your lifestyle with 80 percent of your income, you need to adjust accordingly. Have you used this method?

 

[King Belieal]

I think the 80-20 rule of personal finance is quite more realistic than most other models. Even low income earners can succeed with it.

 

[Springtime]

I am currently allocating 65-70% of my total earnings to expenditures. The remaining is for savings and investment.

 

[Suba]

Personal financial budget with the 80/20 rule we know as the Pareto principle where 20% as investment and savings and 80% to meet daily needs will be very suitable for those who have just worked and lived in another city.

 

[Augusta]

No I don't use this. it might not work for me. I prefer to use the 50 50 rules where I spend and remain equal percentage of my income