Mika
VIP Contributor
I use the of 50/30/20 rule. This personal finance rule says that you allocate 50 percent of your income for essentials like rent, grocery and bills, 30 percent for things you want, a new t-shirt for instance, and use the remaining 20 percent for savings and investments. With this rule, you not only pay for your necessities but also enjoy some luxuries while still saving for the future. This is my favourite personal finance rule. When you follow this rule, you don't have to sacrifice everything for a secure financial future. You'll have enough to invest because you're saving 20 percent consistently.