How to take your personal finances to another level?

A personal finance they may seem like something that is available to very few, but the truth is that it is in the hands of everyone, especially when you have tools as simple as the 50 30 20. Join us to learn about this key rule of personal finance.

We are sure that you have ever tried to take control of your personal finance And in the end you've been abandoning it little by little without success, right? Don't worry, the reality is that this has happened to all of us at some point, and although this is a very important habit for you Economy, the truth is that you don't need to get too complicated, nor do you need to spend too much time on it.

What is the 50 30 20 rule?

This scenario is right where the 50/30/20 rule. This rule consists of a very effective and simple method that helps you determine the amount of money you should allocate to living expenses for each month and to savings. This way you will be able to say goodbye to wasting and you can generate some Strong Personal Finances without the need to control all your transactions.

This rule consists of dividing the Net Monthly Income in three different categories of expenditure:

• 50% for your needs.
• 30% for your whims.
• 20% for your savings.
  
  

If you manage to consistently balance your spending across these three areas of spending, you'll be much more aware of your spending habits and can say goodbye to waste. This rule prevents you from spending your time measuring everything you spend, since you only have to look at these three different categories. If you stick to The rule 50 30 20, it will be easier for you to improve your personal finance and get on track towards your financial goal.

How does the 50 30 20 rule work?

The rule 50 30 20 facilitate financial management by distributing your net income into three categories of spending: needs, whims and savings.

When you know exactly how much to spend in each category, it'll be easier for you to stick to your budget and control your spending. This is your budget when you use the 50 30 20 rule:

50% dedicated to your needs

This category is very simple to understand, the so-called”Needs“Are those expenses that They Can't Be Avoided, that is, all those products or services that you cannot do without. In this regard, you should be able to cover these expenses with the 50% of your net income

Some of the expenses included in this area would be:

• Invoices
• Food
• Rent
• Insurance
• Transportation

In the event that these expenses exceed 50% of your net income The most recommended thing for your personal finance It would be to make a small adjustment, such as changing electricity supplier, car insurance, etc.

30% dedicated to your whims

Once your basic economic needs are covered, you can allocate the 30% of your net income at your whim. Within the category of whims we would find the expenses on which you can decide whether to spend money or not, which makes them Expendable. These expenses include:

• Eating out
• Vacances
• Subscriptions (Netflix, Disney+, HBO)
• Clothing (whatever is not needed)

If this type of expense exceeds 30% of your net income, it would be much easier to make an adjustment than in the previous category. Since Of These whims can be dispensed with, we can really decide if we spend part of our money on them or not. It seems simple, but sometimes it can be a big step for a wasteful person.

20% dedicated to savings

Now that you have covered all the expenses for the month, you can allocate the excess (20%) to Savings, or Not. And why not? We are not inviting you not to save and waste, of course, we encourage you to go One Step Further.

Invest. As We Saw in Others Post from this blog Investment is no longer an option, otherwise it is an obligation for your personal finance. Saving your money in the bank is no longer a scenario that can be considered.

There are numerous ways to Invest, but we, of course, recommend you Invest in Reental And our Tokenized properties. Because Invest in Reental And our Real estate Suppose Invest in the real estate sector safely, and also cost-effective.

Take control of your personal finance To get closer to your Financial Objective personal, your economy and your peace of mind will thank you. If you are curious to know Reental and how we can help you with your personal finances, don't hesitate to sign up and discover everything we can offer you.

In order not to miss any of the opportunities we present, we recommend that you join our group of Discord Or Telegram To get to know others Reentels and the whole team. Of course we invite you to take a look at our articles on the blog to continue informing you.

Welcome to the new way of doing finance, welcome to Reental.