In this video, you will learn about financial planning. The video explains money management tips and how you can better prepare for the future. The 50/30/20 rule is a good way to manage your money.
50% of your money should be used to manage your needs. This can be bills, essentials, etc. 30% of your money will go towards wants. This includes unnecessary purchases. The other 20% of your money goes towards paying off debts. Insurances are included in the first 50% of essentials. The best way to manage your money is to follow these steps. Wants are the biggest way people waste money. Are you willing to look past minor inconveniences? If not, it can be hard to save money. Eating out is a big one for amerians. Hobbies are also a want. These are things that you don’t need, but they enhance the quality of your life. Savings and paying off debt is only 20% of your income. An emergency fund is considered savings. 6-12 months of living expenses is an emergency fund. One layoff in a family of two can really make a family struggle. By saving the money early, it won’t be as bad if someone looses their job.