Is it crazy to set aside 25% of your income for the fun things in life? Many financial advisers would give that a big, fat ‘yes’. But Sarah Riegelhuth has a rule of thumb which, she says, might not always be successful – you have to work towards a fine balance, but if done right you can have a quarter of whatever money is coming in to spend on the fun side of life.
Thank you for reading this post, don't forget to subscribe!And the longer you follow her 50/25/25 Rule of Saving, the easier it gets, giving you even more to spend on yourself.
So what is this rule?
Sarah advises that you spend 50% of your jncome on the things you NEED in life, 25% of your income on the things you WANT, and save 25% of your income to invest in your future – which means having more money for the fun stuff further down the track.
Sounds like a good plan to us Sarah!
‘Please note this content is of a general nature and should be used for informational and educational interest purposes only. Please seek professional advice, in relation to your own personal circumstances, before making any financial decisions.’
