The bottom line is that you will have a whole range of different goals across different time frames, and these will change throughout your life.
Your priorities will change, your circumstances will change and as a result you will end up constantly refining your financial goals.
But no matter what your goal or goals are, all of these things require planning. Please see some useful guides in below links which will help you take the first step in achieving those individual goals.
What is the 50/30/20 rule?
50/30/20 is a budgeting rule that, as a rule of thumb, allows you to spend 50% of your income on your needs, 30% on your wants and put the remaining 20% into an emergency fund. It can be a smart way for you to budget and manage your money.
How to make your own 50/30/20 rule
The best place to start is by following these three steps and making the 50/30/20 rule work for you.
- Find out what you earn after tax – To manage our budgets, we need to know how much we earn each month once taxes have been removed. Check your payslip and see how much is being deposited into your account and don’t forget to check your pension contributions and see if these can be maximised.
- Group your outgoings into needs and wants – Now that you know how much money is coming in, let’s look at how much is going out and where to. Go through your bank statement and take an honest look at what you spend your money on. Be strict and if you’re unsure if something is a need or a want, try going without it for a month and then decide.
- Rework your budget –By regularly checking your spending and asking yourself the question ‘Is this a want or is this a need’, you’ll be able to make 50/30/20 rule work for you and hit your savings goal.