Are you trying to save money but don’t know where to start? Josette Crumble, a leading financial coach, has the perfect solution for you! In this article, Josette debunks the 80/20 and 50/30/20 rules of personal finance and offers a new plan that actually works!
According to Josette, the key to successful saving is understanding your own spending habits. So don’t wait any longer – read on to find out how you can start saving today!
The 80/20 Rule – Debunked
The 80/20 rule, which states that 80% of your income should go toward expenses and 20% should be saved, is often touted as the best way to save money. Wealth gurus, financial advisors, and bloggers all speak highly of it.
So who lives by it? Not the rich. Wealthy people don’t save their money, they spend it on things that will help them grow their wealth. They invest in stocks, bonds, and mutual funds. Some use the interest of their investments to pay for their monthly expenses so they can free up more revenue to invest. The key to successful wealth growth lies not in saving, but in understanding how you spend your money.
The 50/30/20 Rule – Debunked
The 50/30/20 rule is the second most popular rule when it comes to saving money. It states that 50% of your income should be used for necessities, 30% for wants, and 20% for savings. But here’s the issue: What is considered a necessity? That varies from person to person!
What one person sees as a frivolous item to waste money on is a necessity to someone else. So it’s important to understand what kind of person you are and how much should be allocated for each category.
