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The Golden Rule of Personal Finance

April 21, 2024
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EasyEquities
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EasyEquities

The 50/30/20 rule

The 50/30/20 rule

To break down the above picture:
-50% of your income should go towards your needs (things you cannot live without)
-30% of your income should go towards your wants (your lifestyle choices)
-20% of your income should be saved (emergency funds or investments)

By doing this every month, you are always increasing your net worth through assets. Remember, it's not about how much money you make, it's about how much money you keep!

However, due to the economic state of South Africa many people are unable to save/invest this much. But thanks to EasyEquities, South Africans can now invest as little as R5!

This means that if you cannot afford to invest 20% of your income, you can still invest something! Over the long term, these small contributions will make a massive difference, even if it's just R50/R100 a month
 


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