I have been living on the 60/40 budgeting rule for more than three years now. I had read on this subject in a magazine article and in a conversation with a colleague, I found out a simple system in which my colleague has been using for years.
The Rule (60%)
The 60/40 rule simply says that 60% of your gross income should go to Committed or Fixed expenses. These expenses are your Overhead expenses, meaning the basic things you need to pay to survive. They include:
• Basic food and clothing needs.
• Rent or Mortgage
• Utilities (electricity, water, internet, cable subscription etc.)
• Insurance premiums.
• Charitable contributions.
• Taxes.
It looks simple enough but in my experience putting all committed expenses into 60% of my income was a tough thing to do. But don’t give up as it is very possible to achieve this. Continue reading ‘How to Save More Money: The 60-40 Budgeting Rule’ »
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