| Eve & Elle Admin
When asked about her success, Sophia Amoruso loves to say, “Money looks better in the bank than on your feet.” In her book the founder of NastyGal and Girlboss Media, states it is essential to know how to manage your money. The 50/20/20 rule is a great way to set up a budget but also to understand where you are over or underpaying relative to your income.
1# 50 out of the 50/20/30 rule
- 30% housing (rent or mortgage)
- 10% groceries, toiletries, etc
- 5% electricity, water, gas bills
- 5% to transportation/ parking
If these costs combined go over 50% of your income, you are living above your paycheck. This will make it much harder to invest in yourself by saving and will set you up for a paycheck-to-paycheck life.
2# 20 out of the 50/20/30 rule
3# 30 out of the 50/20/30 rule
So the goal is...
Getting more value out of your finances. So it’s time to start investing in yourself instead of your shoe collection. Did you know about the 50/20/30 rule, or are you just finding out? Do you feel it will help you with budgeting and the organization of your financial life? Let us know in the comments.