Saving Tips: Even with a good income, you can't save money? What is the 70/10/10/10 rule; how to use it?
Even with a good income, we can still face difficulties managing our expenses. It's easy to lose track of how quickly small, everyday expenses add up and overwhelm our salaries. If you're also struggling to manage your expenses according to your salary, this article might be helpful for you. Today, we'll learn how you can manage your expenses using the 70/10/10/10 rule.
What is the 70/10/10/10 rule?
This rule helps you manage your expenses according to your salary.
70% - For daily expenses
10% - Long-term investments
10% - Short-term savings
10% - For personal development
70% - For daily expenses
First, use 70 percent of your salary for everyday expenses. This includes children's school fees, electricity bills, insurance, household expenses, etc. If your expenses exceed 70 percent, experts advise that you should reduce your expenses or consider increasing your income.
10% - Long-term investments
Similarly, you can use 10 percent of your money for long-term investments. This money can be used for major future expenses, such as a wedding, home repairs, etc.
10% - Short-term savings
Likewise, save 10 percent of your salary as short-term savings. Sometimes unexpected expenses arise in our lives, such as a broken appliance or a medical emergency. These expenses shouldn't burden your long-term investments. Therefore, make sure to have short-term savings.
10% - For personal development
If you have taken out any loans, try to cover them with 10 percent of your salary. Credit card bills are also included in this 10 percent. If you don't have any other expenses or debts, you can use this portion for your personal development, such as learning a new skill or joining a new course.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
