The 50-30-20 rule: an effective way to building the assets

The 50-30-20 rule-this succeeds in building assets

Many people do not manage to regularly put some money on their side and as a result, the account balance decreases considerably. However, neither major investments cannot be made or a financial cushion can be saved. With the 50-30-20 rule, on the other hand, a small fortune can also be built up in the long term and the view of the account balance at the end of the month is becoming more pleasant. Because in the 50-30-20 rule, the salary is divided into three different spending or savings areas, which means that firstly, you keep a financial overview of your finances and secondly, the monthly budget is adjusted so that something is always left. A little tip: For all parts of the regulation, it is advisable to create separate accounts and create permanent orders, because then you are not even tempted to use the money elsewhere.

The 50 percent

Half of the income is placed aside for basic expenditure and monthly fixed costs. Basic and fixed costs include running costs such as rent, electricity, car, internet, cell phone, food and other fixed expenses. Here it is worth opening a second account, which is automatically transferred to 50 percent of the wages every month. The second account is offered by many banks to the checking account free of charge.

Secure attractive interest with the Consorsbank overnight account*! New customers receive 3.50 % PA for the first three months (as of 03.12.2024). No minimum system and its deposits up to € 1,000,000 are protected. Open the account here for free!*

The 30 percent

30 percent of the monthly budget can be used for all your own needs and wishes that you want to fulfill. These include, for example, restaurant visits, vacation, hobbies, shopping and much more. If larger trips or purchases are pending, this part should be covered somewhat to avoid covering the budget. In order to find out how much or little you have actually already spent and how much of the 30 percent can be covered for higher expenses, it is worthwhile to create a budget book.

The 20 percent

The last fifth of the monthly salary is either saved as a reserve for financial bottlenecks or used for the debt repayment. This part of the income can be important than expected, since unexpected repairs can be incurred, a high calculation unexpectedly fluttered into the house or suddenly unemployment is in the room. Either way, a small fortune will build up over time, which guarantees financial security.

With your next tax return, bring back an average of 1,063 euros in 17 minutes.
Start your tax return with miracle tax*

Other austerity measures also help with asset structure

Not only the 50-30-20 rule helps with asset structure, because with the help of further simple measures it can still be saved easily. Some small changes to the heating behavior can help a cheaper electricity bill and shortly before the end of the year it is also worth creating a financial overview in order to save taxes. For couples or single parents with children, it is also advisable to think of assets for the youngsters, since they should start life without financial worries.

Editor finance.net

*That means the asterisk: our news is objectively researched and created independently. So that our information is available free of charge, clicks are sometimes remunerated on links. We characterize these so -called affiliate links with an asterisk. Finance.net GmbH receives money, but never the author individually when readers click on such a link or conclude a contract with the provider. Whether finance.net GmbH receives a remuneration and to what extent has no influence on the product recommendations.

This text serves exclusively for information purposes and does not represent an investment recommendation. Finance.net GmbH excludes any regress entitlements. Authors, editors and the quoted sources are not liable for any losses caused by the purchase or sale of the securities or financial products mentioned in the articles.