Adopt this formula in the midst of growing recession, there will be huge savings from salary, there will also be a break in expenses

The day by day increasing recession is disrupting people's budgets, the question arises as to how to save these days and if proper savings are not managed from the income, most of the salary is spent on household expenses. In this situation, a proper savings management formula is needed to save for children's school fees, hospital expenses, any other emergency expenses. This saving formula is divided into three parts. Which is known as 50:30:20 formula.

You can apply the formula of 50:30:20 salary amount

In simple words, the earnings are divided into three parts by this. If you are employed then the salary amount is in your account. You can apply the 50:30:20 formula to it. On the other hand if you are a businessman, by applying this formula to the total income of the month, you can save money for savings despite all expenses. Let's understand this formula in a simple way.

Let's start with 50 percent savings

Suppose your salary is Rs 40,000 per month and you can't decide how to save money? So first of all let's understand the 50:30:20 formula. This 50 percent +30 percent +20 percent formula means that your earnings need to be divided into three parts. The first 50 percent should be spent on essentials including food, drink, housing and education. If it is a rented house or even a loan, keep aside the required amount for its rent or EMI. Hence half of your total income ie Rs. 20 thousand should be spent on this.

Why spend 30 percent of salary?

30 percent of your salary means the remaining Rs. 12 thousand should be spent in which they can fulfill their hobbies. In which expenses like going out, watching movies, shopping, buying gadgets, buying a vehicle or getting it repaired etc. will have to be done from this 30 percent part of the salary.

Why spend the 20 percent portion?

The remaining 20 percent of the salary is Rs. 8 thousand which should be used for investment. Which can be invested in mutual funds, SIPs or bonds every month. If initially it is difficult to save 20 percent of the salary, then a list should be made in which the expenses should be prioritized according to how many expenses are necessary and how many are unnecessary. As in the habit of going out to eat twice in 15 days, one should go out to eat only once in 15 days to curb unnecessary expenditure.