The 50/30/20 spending plan is both simple and sustainable, and it allows for little luxuries today, whilst still keeping an eye on the future.
To begin, follow your spending habits for at least two weeks, and categorise how much goes to necessities, how much to luxuries and what is saved or invested.
Next, work to align your plan to 50% necessities, 30% discretionary spending and 20% toward saving and investing.
Finally, check-in quarterly, or after any life event (marriage, move, new job, new baby, divorce, etc) to recalibrate as needed.
It’s much easier to design, and follow, a spending plan if there’s inspiration, romance, fun and adventure included.
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