Do you know about the 50:30:20 Budget Rule?

By FriMi April-23rd-2021

If you want to manage your salary effortlessly and reach your financial goals, here’s something you should keep on reading..

What is this 50:30:20 budget rule?

It’s a simple guide to manage your hard-earned money every month and keep your finances in check by categorizing how you should allocate the income into needs, wants, and savings or debt. It was popularized by Senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan.

  • 50% to needs: This includes expenses that you must keep in your budget no matter what; like utility bills, rent, transportation, healthcare, groceries etc.
  • 30% to wants: These are expenses that are not compulsory to live by; like dining out, trips, vacations, memberships, gifts, luxuries and other entertainment items.
  • 20% to savings or debt: Adding money to an emergency fund, investment or settling off any debt you may have, comes under this category.

Have you followed this rule of thumb unknowingly?

The chances are, if you’re not an active FriMi user, it is very hard for you to check and confirm. Many FriMians use the Transaction History section of the app to keep a track of all the debit and credit transactions and use features such as Savings Pots to plan their expenses for the upcoming months. 

FriMi is becoming THE lifestyle app for many users because it’s the only app you will need to save, settle all your bills, purchase items and do everyday banking transactions digitally.

So, be a part of the FriMi Lifestyle by managing your salary& keep track of all your finances from one app.