Personally, I only came across this rule by browsing through Tik Tok. It pretty much means that you take your income and devote 50% to your needs (i.e., expenses), 30% to your wants (i.e., restaurants), and 20% to your savings.
Now, you DON’T have to follow this rule all the time, especially if you’re income always fluctuates like mine, but it should be used as a reference.
You could always tweak the rule. For me, I work a lot more in the summer so I could do 60/30/10 for my income, around the holidays it could be 40/20/40. The options are endless, literally.
Age your Money
If you’re spending the money that you made 2 months ago, then you will never stress about going broke. It can be stressful if you see your account declining at a faster rate than the money coming in and once you fall in that trap it could lead to a lot of added stress.
Create New Streams of Income
Nowadays, it’s very simple to start earning money with your passions. Like making videos? Post them on YouTube! It might take you a while to start making money, but if you truly enjoy doing something, then money will follow.
You could make a lot of money by investing in the stock market or even cryptocurrency. Like my finance teacher once said, if you’re young you can handle risky investments. He made a great point! Especially if you’re living with your parents because your expenses are reduced substantially. Money sitting in your savings account won’t be worth as much in a year due to inflation. The 1% a month you’re “gaining” in interest with your savings account won’t get you anywhere.
Thank you so much for reading this week’s post! Don’t forget to follow @theweekly__ on instagram. And feel free to message me about which posts you’d like to see next!