There are various saving methods that can be used to collect large amounts of money in a short time, there are others that are used for the long term and to organize the finances of people who are not used to having these habits.
The 70-20 and 10 rule, as explained by Forbes, requires that 70 percent of your income must be used for all your fixed monthly expenses, including rent, utilities, food and transportation.
In the case of 20 percent, that must be used for savings or an investment and the remaining 10 percent can be used for leisure and entertainment.
The original idea is that you have a savings method that doesn’t suffocate you, but rather helps you manage your money better.
You can even modify the general terms of the quantities, as long as the majority is for expenses and the rest is for investment and leisure.
Smart saving, considering it as an essential expense, allows us to create an emergency fund, invest in future projects and guarantee our long-term financial stability.
In this way, balance is sought in finances, since expenses are what must be paid, to cover and satisfy the ‘here and now’, for example, basic services, such as food and transportation.
In the tastes, if there is everything you need to maintain your lifestyle, whether it is through a data plan, purchases or subscriptions to a platform, going out on weekends or the preference of a certain brand of food, that is what you should allocate 10 percent of your income to.
what to invest
Whether it is traditional savings or a short-term investment, the idea is that you have defined a part of your salary to cover a future goal.
Think about the unexpected and the possibility of using money that you do not have on a monthly basis.
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