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Personal Finance Rule of Thumb #1: 50-30-20 BUDGETING RULE
Most people save too little, and unknowingly spend too much.
The 50/30/20 rule of thumb is a way to become aware of your financial habits. By spending less on the things that don’t matter that much to you, you can save more for the things that do.
It is a guideline for allocating your budget accordingly: 50% to “needs,” 30% to “wants,” and 20% to your financial goals.
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