By berrysmotivation - February 09, 2016

THE 60-20-20 RULE
It is the 8th day of FEBRUARY already, which means your trial month of 2016 is officially over. So it’s time to get serious about your new years plans. You may have started your year the same way you always do, living from paycheck to paycheck, counting down the last days of the month. With the 60/20/20 method you will be able to have a good budget. Whether you’re a student, have a full time job or have just started to earn money, the great thing about this rule is that it applies to everyone and helps you gain control of your earnings and expenses.

60 – “Your Needs”

First and foremost about 60% of your paycheck goes to very important things you need in your life. Your “needs”, which are things like your rent, your car, your public transport fares, utilities and groceries. These are payments that don’t vary much and things you know you have to pay monthly whether you want to or not.

20 – “Your Savings”

This one sounds hard but 20% of your income each month should go directly into savings. The money you save will be beneficial for certain contributions for your kids future or to pay off debts. You might also have future plans, targets or goals. Put the money in a different bank account, so you don’t even think about spending it on anything else.

20 – “Your Wants”

Now for the fun part! 20% of your monthly payment can be used for the things you love to do and the things you “want” in your life. As long as you’ve taken care of the first two steps, this one is completely up to you. You can spend it on your hobbies, eating out, shopping or weekend getaways" It can be tempting to spend more than 20% on your “wants” but try to honest and be strict with yourself and don’t even start to cheat.

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  1. This is good advice o. But it's easier said than done.. As humans, most times our wants overshadow our needs