It’s payday again and I can feel your excitement holding that payslip of yours more so the money that you will withdraw in the ATM Machine. I wonder how you budget your cut-off payment. I know a lot of us have different budget techniques. I blogged about some HERE
No matter how you use your work pay I’d like to invite you to know The 50-30-20 Rule
that will change how you use your paycheck.
Are you ready?
50% of your Take-Home Pay should go to ESSENTIAL EXPENSES
When we say Essential Expenses these are essential items that has to be bought in order to maintain the foundation of your daily life. Example will be your House Rent, Transportation Allowance, Food/Grocery and/or Electric Bills. Mainly items that are needed in order for you to function.
20% of your Take-Home Pay should go to FINANCIAL FREEDOM
Financial Freedom means your financial investments and savings or goals that you have in order to financially succeed. Count on here your debt payments, loans, savings and/or investments from different investment vehicles you own.
30% of your Take-Home Pay should go to LIFESTYLE
These are chosen luxuries or things that you personally need like hobbies, shopping and other miscellaneous expenses. Never feel guilty having some amount in this area especially if you have SAVED FIRST in your Essential Expenses and Financial Freedom areas.
NOTE that the Tithe is DEDUCTED already on this SAMPLE. Give back first to God before anythings else.
NOW LET’S HAVE A WORKING EXAMPLE.
Maria’s MONTHLY Take-Home pay is 11,500pesos less Tax, SSS, Philhealth and Pag-Ibig.
50% of 11,500pesos will be 5750pesos
From this Maria will budget as follows: Rent: 1500pesos
Transportation: 2000pesos (100pesos X Next 20 Working Days)
Food: 1500pesos (75pesos X Next 20 Working Days)
20% of 11,500pesos will be 2,300pesos
From this Maria will budget as follows:
Emergency Fund: 800pesos
Mutual Fund: 1000pesos
St. Peter (Life Insurance): 550pesos
30% of 11,500pesos will be 3,450pesos
From this Maria will budget as follows: Phone Installment: 500pesos
Shopping for soap, shampoo etc.: 1000pesos
Gym Fee: 1000pesos
From this working sample we can see that The 50-20-30 Rule is EASY AND EFFICIENT way of budgeting.
Do this for the coming Payslip and tell me how your experience went. Please Message me at my Contact Form box or Comment below so we’ll get to know more of each other!!! Also if you either email me at firstname.lastname@example.org or through the Contact Form in the Upper Left YOU will receive a FREE 50-20-30 Rule of Budgeting Template!!!
Thank you so much.