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I've seen this '50/30/20 rule' recommend before, in the UK press (financial articles) and by banks [1] and financial resources. I'm interested in it's origin,
by beermonster 4y ago
I've seen this '50/30/20 rule' recommend before, in the UK press (financial articles) and by banks [1] and financial resources.
I'm interested in it's origin, whether it still holds true today (is the advice still valid) and alternatives strategies for comparison (given today's current economical climate, rising inflation and interest rates).
[1] e.g. https://www.hsbc.co.uk/financial-fitness/everyday-budgeting/spending-your-income/ https://www.hsbc.co.uk/financial-fitness/everyday-budgeting/...
- zamnos 4y agogiven that it's a 1/3 rule elsewhere, it would be interesting to know indeed. it's split a bit differently than your link, but it's a third of your after-tax income to go toward living expenses, a third toward your home and the last third toward savings and investments.
- gruez 4y ago>but it's a third of your after-tax income to go toward living expenses, a third toward your home so 66% going to necessities rather than 50%?