What is the 30-30-30-10 formula, every small and big need will now be fulfilled with savings, how to use it?

The middle class has always faced the problem that no matter how high their salary, their expenses are never met. This is because they are unable to manage their salary properly. You can use several formulas to manage their salary.

Today we will learn how to manage your salary effectively using the 30-30-30-10 formula.

What is the 30-30-30-10 formula?

With this formula, you can easily manage your salary by dividing it into different parts.

Under this formula, you should divide your salary as follows:

30% - for household expenses
30% - for other essential expenses
30% - for saving for the future
10% - for your desires like watching movies, traveling, etc.

Let's understand the use of this formula with an example.

Let's understand this with an example:

Suppose a person earns ₹50,000 per month. Using this formula:

30% - ₹15,000 will go towards household expenses
30% - ₹15,000 for other essential expenses
30% - You will save another ₹15,000 for the future
10% - You can use the remaining ₹5,000 for desired expenses.

This way, you can easily manage your salary. 60% of your salary is set aside for your expenses. You can easily use it for many important tasks, such as household water and electricity bills, groceries, etc.

On the other hand, if you're saving 30% of your ₹50,000 salary, or ₹15,000 per month, this is very good for your future. You can meet many future needs with these savings. You can invest this money in safe investments like fixed deposits (FDs) and RDs (RDs), and unsecured investments like mutual funds.

If you can buy or accomplish whatever you want for Rs 5000 or less in a month, that is enough to satisfy yourself.

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.