If you’re looking to get your money in order, one of the easiest, most effective ways to organise your finances is by using the 50/30/20 rule. Senator Elizabeth Warren created the 50/30/20/rule for spending and saving when co-authoring a personal finance book with her daughter, Amelia Warren Tyagi: All Your Worth: The Ultimate Lifetime Money Plan.
The rule is a simple, accessible way to understanding how to best spend your cash. By organising your expenses into three main spending categories, the 50/30/20 rule is a surefire way to getting your spending under control while helping you get closer to reaching your financial goals — all without having to stress over money minutiae.
Read on to learn the simple four steps you need to get started using the 50/30/20 rule in your own life.