How much money you should save every month? 50/30/20 Rule
Saving money is a good habit and it is essential for our life. Everyone should make a budget of expanse and save at least the money from their monthly income. There is some rule which helps you to understand the concept of saving. you can save money easily whether you are a businessman, entrepreneur, employee, student, or housewife. This is valid for all. 50/30/20 RULE According to this rule, First, divide your income into three parts, no matter how much you earn. 50% - For essentials like rent and food 30%- For discretion spending 20% - For saving For high earners, Expanse low and save a large percentage of income For low earners, Keeping something is better than nothing If you want to retire early then there is a most famous principle you should know. 4% Rule of retirement / safe withdrawal rate The formula for financial independence; [annual expenses<=4% of total investment] save and invest 25x of your annual expanse = financial independence It's only a guideline. Fo