Saving money in today's economy may seem like an impossible mission for many individuals and family to do. As the cost of goods, services, and property rises there is not an equal growth with income (for some professions). Keeping that combination in mind, to even think that setting a budget such as the 60/40 rule is not as easy as one may think.
The 60/40 rule is not an impossible budget to achieve and in the end, it will definitely be worth it. Here are a few tips and advice on what the 60/40 rule is and how you can apply it to your own budget.
The 40% part of this rule is the more "fun and exciting" part that doesn't put people in a bad mood. This part can be broken down into four different factors that you can adjust at your leisure.
Splurge money: Everyone deserves to have a little fun every now and then. No matter if you are a single individual or have a family, you as the adult(s) deserve to have fun with the money you have earned alone or with your family. Even if you set one or two days out of the week to simply enjoy life away from work, it is better than nothing. This could be anything from going to the movies, a theme park, your favorite restaurant, and more.
Retirement funds: Planning for the future is always the best thing to do in your life. In the worse case scenario an unforeseen situation occurs and you will need to depend on your saved funds to sustain living after you retire (no longer capable to work).
Savings for the long term: This can also include your retirement funds, or you can break it up to investments that you may desire. Purchasing a new car, a new home, or paying debt that you owe
Miscellaneous funds: These funds can be for anything, unforeseen car/home repairs, vacations, random gifts to yourself or your family, etc.
The 60% side is more of the important grown adult expenses you definitely have to take care of. Bills such as rent/mortgage, insurance (car and home), food, clothes, utilities and of course taxes. If you decide to consistently donate to charities (which also intertwines with taxes), you can definitely apply at your discretion.
How to Set Up a Budget - the 60/40 rule is one way to save money and grow your wealth no matter how much you earn. Those on a tight budget may find the sacrifice too much to bear and that's understandable, but if you can manage to put aside just a little each time money comes in, you will work toward better days down the road.
Illinois paystubs show your earnings. With no software to download, no templates to fill in, and no calculations to perform, say "yes" to your instant Illinois income verification!
This business is owned and operated by a U.S. veteran. The protection of your information is our TOP priority.