🌟 How much amount of my salary/income should I invest ❓🌟
Generally, a 50:30:20 rule is followed for managing our personal finance.
What is a 50:30:20 rule ❓
💰50% of your salary/income should be spent on your needs/daily expenses. Needs are the ones that are required for sustaining your daily life.
💰It includes groceries🍜, house rent/EMI, utility expenses, etc. This 50% of the amount should always be kept as these are required for fulfilling the daily needs.
💰30% of the income should be allocated to your wants. Wants are something that are not necessary are expenses and will not affect your daily routines if avoided.
💰It includes expenses on Movie tickets🍿, vacations✈️, restaurants, subscriptions to various online platforms, etc.
💰20% of the income should be allocated to your investments and emergency funds. Emergency funds are something that will fulfill your needs for at least 4-6 months in case of any emergency. While for the 👛investments, one can invest the amounts in Mutual funds, equities, etc.
💰Investments are very important to beat inflation. Investments like👛 mutual funds will be helpful for long-term financial planning.
💰The above-mentioned proportion may change based on the individual and their expenses. Hence, individuals need to calculate his/her personal expenses and their respective proportions.
Disclaimer: The information mentioned above is only for educational purposes. Kindly contact your financial advisor before trading/investing 💰
Please post your views/queries in the comments below. 👇
