This is a simplified formula for budgeting. Start with your income and calculate 50% for Needs, 30% for Wants and 20% for Savings
- 50% for Needs: These are truly basic or essential expenditures like Food, Shelter, Transport, Utility, Clothing etc
- 30% for Wants: These are items you want but are not essential like eating out etc.
- 20% for Saving: This can include an Emergency Fund, Retirement Fund, Education Fund etc
The details in each category vary from individual to individual given our uniqueness. How are you budgeting for your income?
