The 50/30/20 rule provides a strategic framework: 50% of income for needs, 30% for wants, and 20% for savings and debt repayment. This balance prevents “budget burnout” while ensuring progress toward financial freedom.
During periods of high inflation, a monthly audit of your recurring expenses is essential. If your “needs” exceed 50%, consider debt consolidation to lower your fixed monthly costs and free up cash flow.
“Note: This is not financial advice.”