Money Matters: The 50/25/25 Rule Of How To Save Your Money

Sarah Riegelhuth

Finance Expert

08/01/2016

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.

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.’