The 50-30-20 principle of financial planning

Having an organized flow of expenses is essential when you have a steady income.

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The cost of essentials is rapidly increasing in the world today.

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What can you do to make sure you have surplus cash left over to spend on wants and save?

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Kaustabh Belapurkar joined us to answer this question.

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He suggested the 50-30-20 rule of financial planning as a key rule to consider for budgeting expenses.

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As per rule, one must spend 50% of their earnings on necessities or requirements.

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For desires, you must set aside 30% of your earnings.

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And finally, you have to Invest 20% of your earnings.

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You'll find it simple to make and commit to a monthly budget if you follow this rule.

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