Etini
Valued Contributor
People talk so much about saving models that are truly reflective of the reality of living a balanced lifestyle. And it seems like one of the best models for financial planning is the 50-15-5-30 model. Let's break it down.
In this model:
50% or your income goes to basic needs like food, shelter and utilities.
15% of your income goes to wants which include your fun stuff.
5% of your income goes to all kinds of savings including that for projects, emergency and retirement savings.
30% of your income goes to repay debts.
I feel this budgeting method perfectly captures the major financial expenses that a reasonable human should make to live today, and secure tomorrow. What do you think?
In this model:
50% or your income goes to basic needs like food, shelter and utilities.
15% of your income goes to wants which include your fun stuff.
5% of your income goes to all kinds of savings including that for projects, emergency and retirement savings.
30% of your income goes to repay debts.
I feel this budgeting method perfectly captures the major financial expenses that a reasonable human should make to live today, and secure tomorrow. What do you think?
