The 50/20/30 rule for family budgeting 💰

Elizabeth and Amelia Warren, authors of All Your Wealth: a Master Money Plan for Life, describe a simple but effective way to budget.

They recommend dividing the budget structure into three main components:

✅ 50% of income should cover essential expenses such as housing, taxes and groceries;
✅ 30% for optional expenses such as entertainment, going to cafes and movies, etc.;
✅ 20% is spent on paying off loans and debts, as well as set aside as a reserve.

Family budget planning is one of the pillars of managing personal finances and achieving financial well-being. Do not neglect it!