To get the recommended amount in your savings account, By following the 10/10/80 rule,you can create a well-rounded financial plan that covers your needs,prepares you for the future ,and lets you enjoy the present.Implementing
this strategy can help you manage your money more effective ,reduce financial stress ,and ultimately live like the top 1%.So take control of your finance today and start applying
the 10/10/80 rule to acheive financial freedom and peace of mind.
10%:Charity
The 10% allocated to Others people Help Account..This portion of your income should cover essential expenses such as Charity.Beside the feel good factors of helping others,
giving away part of your income also helps you to sub-consciously develop the wealth mentality that you have more than engough to give away.For example
If you earn 1 lakh per month,then
you can allocated 10,000/-(Charity)
or
you can allocated 10,000/-(Savings)
and 80,000/- (Live Off of account)
10%:Savings
The 10 % of allocated saving and investing of your income such as emergency fund,future expenses(sinking fund),retirement fund),education fund,marrige fun,short term fund or passive income.within this category ,its wise to set aside 3-5% as an emergency fund .This fund facts as a financial safety
net ,protecting you from unexpected expenses like medical emergencies or urgent home repair.The remaining portion of this 10% should be invest in reliable option
such as index funds,which offer a balanced and diversified approach to growing your wealth over time.smart investing can help you build a secure financial future
and achive your long term goals.For example
If you earn 1 lakh per month,then
you can allocated 10,000/-(Charity)
or
you can allocated 10,000/-(Savings)
and 80,000/- (Live Off of account)
80%:Live Off of Account
The 80% allocated to Living .This portion of your income should cover essential expenses such as rent or housing,food,trasportation,insurance,groceries,hea
lthcare,utilities or medical.By keeping track of these necessary costs,you can ensure that your basic needs are met without overspending.Budgeting for these
essentials helps you maintain a stable financial foundation ,which is crucial for long -term financial health.For example
If you earn 1 lakh per month,then
you can allocated 10,000/-(Charity)
or
you can allocated 10,000/-(Savings)
and 80,000/- (Live Off of account)
FAQs About 10-10-80 Budget Rule For Saving Money India
What is the 80-10-10 rule of saving?
When following the 10-10-80 rule, you take your income and divide it into three parts: 10% goes into your savings, and the other 10% is given away, either as charitable donations or to help others. The remaining 80% is yours to live on, and you can spend it on bills, groceries, Netflix subscriptions, etc.
What is 50-30-20 rule of money in India?
The 50-30-20 Rule tells you to break down your income into three buckets. 50% of your total income goes towards your needs, 30% towards your wants, and 20% towards your savings and investments
Conclusion
the 10/10/80 rule,you can create a well-rounded financial plan that covers your needs,prepares you for the future ,and lets you enjoy the present.Implementing
this strategy can help you manage your money more effective ,reduce financial stress ,and ultimately live like the top 1%.So take control of your finance today and start applying
the 10/10/80 rule to acheive financial freedom and peace of mind.