What Are The Most Essential Personal Finance Rules

[Nomad]

There are certain personal finance rules that one needs to follow. One widely followed personal finance rule is the rule of 50/30/20. According to this rule, you use 50 percent of your income to pay for necessities, 30 percent goes toward personal wants, and 20 percent for saving and investment. What other personal finance rule do you know or follow?

 

[Springtime]

My rule is 50-20-30. 50% of my income are for buying necessities; 20 for wants and 30 for savings and investment.

 

[Kera]

The finance related rule that I follow the most is not to spend on things that are not necessities. I don't do personal financial models.

 

[Suba]

Although the 50/30/20 budget method is the most commonly used method, we must adjust it to our financial conditions and long-term plans. Currently, I am applying the 60/40 method.