Personal Finance Rule: The Rule of 50-50

[Nomad]

How much money you earn does not matter, how you manage your money actually matters. To manage your money you should follow certain financial rules, and one of the important rules for personal finance is the rule of 50-50. You need to maintain your life with 50 percent of your income and the remaining 50 percent should go toward retirement savings, emergency funds, investments, and long-term financial goals like property purchases or even going on a vacation.

 

[King Belieal]

I think the 50-50 model of financial management is a good model. It works for people that are able to plan their lives well.

 

[Kross]

I don't believe in all these financial models and rules. Just be sure that you have investments and savings.

 

[Suba]

I think making a budget with the 50-50 rule is not suitable for everyone, except for you and those who have a large income, so that 50% can cover all monthly needs, but for those who have just started working, of course it will be difficult to determine their budget rules, especially if they have to rent a place to live that is not cheap.