These simple rules have made a difference in my life at first it was only financially. For every paycheck/ money i came upon i divided into segments, 50% for bills, 30% for entertainment, 20% for saving/investments. Now these are just the base of the model you can make slight tweaks to them but they generally work as is.
ex paycheck $1,000
Without any thinking about what you want, you take
- 20% for future. ($200) save it 0r invest it. So I usually do $90 investment, $10 in an emergency fund and $100 to a no touching savings.
- 50% for responsibilities. ($500) I usually have
- phone bills
- car/insurance payment
- Debt
- Food
- 30% for fun/want. ($300) goals and paying yourself.
- This split is you paying yourself it can be conservative to try to save towards something or splurge on yourself whatever makes you happy and moves you along your goals in life.
- I usually do $100 allowance for anything i want and to try to get what i really want. The rest is put into a personal fun savings for vacation and big purchases for myself.
I moved back home for the sole purpose of saving money and fixing my credit and getting ahead in life. Yes home is great no rent but it comes with all the problems you left behind. That was a sacrifice that i was willing to make after my time in the army i knew i can get my own place live life like everyone get a job stuck in one spot trying to progress out of this situation im in but i wanted to do something different take a different route into the world that most don’t take or maybe we should really say don’t know about. I see how my friends are 30 and up slowly getting more bitter, unhealthy, overweight and stress, hell i see some of those in my family but they don’t know any better they never really questioned the life they lived bc its a lot better than what they could be having so they are grateful of surviving, I don’t want to survive i want to live.
So i started applying this simple 50/30/20 rule to not just my finances in which I saw a big improvement but to my life. 50% working hard pulling doubles/triples, saving and denying myself that instant gratification and living as below my means as i can. 30% having time with my family and friends keeping in touch with people, while being true to myself and trying to live in the moment as I save and prepare for the future and 20% eating healthy, working out and constantly reading and improving my knowledge.
This simple 50/30/20 rule is my way of the K.I.S.S method of trying to not over complicate life even though it is complicated and slowly but surely progressing to a state of being that makes me happy and free.
So far with this simple little rule it has kept it all simple and in order so every time i look down at my life i can see it into a spreadsheet of progress. Where i have failed and fallen outta my path to where i have exceeded my goals and slowly but surely it’s compounding i just wish i did this 4 years ago i would be in a whole new spot.
This isn’t easy but what is?