Monday, 6 June 2016

How to Budget Your Money with 40/30/30 Rule



Whether you are a parent with two kids or recent college graduate working your first job, 40/30/30 guideline can help you assess your budget. This approach often helps to understand the big picture of where the money is going.

Let us break your budget in three buckets (rather than the seemingly infinite categories of some traditional budgeting). It is designed to help you figure out how much you may want to allocate to each area every month, and can also help you determine the order in which your money can be allocated.

Retirement-Planning


40/30/30 broken down

Fixed Costs

These are bills and expenses that dont vary much o monthly basis, like rent or loan payments, utilities and car payments. Also include subscriptions such as gym membership and DTH/Mobile/Internet accounts, in fixed cost because you are committed to payting them on a monthly basis.
When it comes to fixed cost, I would suggest that you aim to keep your monthly total not more than 40% of your take home pay.

Financial Goals
I would recommend keeping aside at least 30% of your take home pay towards important payments or contribution that will help you secure your financial foundation. I believe there are three essential goals everyone should strive for: savings for your goals, savings for retirement and building an emergency fund. But your financial goals can also include larger savings priorities, like a down payment on a new home or child’s education funding and lifestyle goal such as a vacation or a dream car.

Flexible Spending
Finally, consider budgeting not more than 30% of your take home pay towards flexible spending. There are day to day expenses that can vary from month to month, like eating out, groceries, shopping, hobbies or entertainment.
I have included groceries in flexible spending because even though food is a necessity in your budget, how you spend on food can vary. Some days you would prefer to dine out and some days you prefer to make it yourself. It doesn’t really matter what you spend your money on each month in this category, as long as you are aware of your spending and not going over total flexible budget each month

One Note on Taxation
As you might have noticed the 40/30/30 guidelines applies only to take home pay. The deductions that are happening before the salary hitting your bank account is not considered. The deductions may be towards Provident Fund, Income Tax etc. While choosing to invest in retirement plans, equity linked tax savings mutual fund schemes you would save larger amount of taxes depending on Income Tax slab you belong to.

If you are just starting to put together a budget, the 40/30/30 guideline can serve as a useful benchmark for how to divide up your income.  When it comes down to it. Though, how you spend (and save) your money depends on your specific goals and lifestyle.

So be a smart and informed investor – check how much insurance do you need and why you should in invest in Mutual Funds versus ULIP after analyzing the above two you can invest money via sip in best 3 equity mutual funds in India for Retirement

PPS: If you think this page and blog will be useful to any of your friends please spread the word. A good way to start is to share this page on your social circle using floating social share bar on the left

Mutual Funds & Insurance Related Articles :-

Benefits of Systematic Investment Plan
What is Systematic Transfer Plan and How it works ? 
Advantages of Equity Linked Savings Schemes
Top 3 Mutual Funds to Invest in 2016 for Long Term
How Much Insurance Do I Need ?
How to Select Mutual Fund for Portfolio ?

How to Budget your money with 40/30/30 Rule ?
Mutual Fund Versus ULIP 

Why Term Insurance Policy is required till 60 years ?

Equities Related Articles:


What is Power of Attorney in Online Trading?



Futures & Options related article :


















Bull Put Spread

In case of any further explanation you can reach me on vipuls1979@gmail.com or tweet me  @vipuls1979

Disclaimer  :-

The Article is only for information purposes and Vipul Shah (https://investkiyakya.blogspot.com) is not providing any professional/investment advice through it. The article does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. https://investkiyakya.blogspot.com disclaims warranty of any kind, whether express or implied, as to any matter/content contained in this article, including without limitation the implied warranties of merchantability and fitness for a particular purpose. https://investkiyakya.blogspot.com and its subsidiaries / affiliates / sponsors / trustee or their officers, employees, personnel, directors will not be responsible for any direct/indirect loss or liability incurred by the user as a consequence of his or any other person on his behalf taking any investment decisions based on the contents of this guide. Use of this article is at the user’s own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. https://investkiyakya.blogspot.com does not warrant completeness or accuracy of any information published in this guide. All intellectual property rights emerging from this article are and shall remain with https://investkiyakya.blogspot.com. This article is for your personal use and you shall not resell, copy, or redistribute this article , or use it for any commercial purpose. All names and situations depicted in the article are purely fictional and serve the purpose of illustration only. Any resemblance between the illustrations and any persons living or dead is purely coincidental.

46 comments:

  1. Thanks for this. I really like what you've posted here and wish you the best of luck with this blog and thanks for sharing. McKinsey

    ReplyDelete
  2. You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site. amazon internationale rezensionen

    ReplyDelete
  3. At this point I won’t promise anything. The project is not dead, let’s call it a transition period. It’s not just word play. Cannabis business plan template Canada

    ReplyDelete
  4. Excellent information on your blog, thank you for taking the time to share with us. Amazing insight you have on this, it's nice to find a website that details so much information about different artists. cannabis dispensary business

    ReplyDelete
  5. Good article! I really love how it is easy on my eyes and the data are well written. apartments for rent in pompano beach

    ReplyDelete
  6. He world is changing fast. people are also being changed.day by day we are becoming more dependent on digital system.you make me think of this really.You have a nice way of sharing your thoughts. אבי פארטס בע

    ReplyDelete
  7. I am always searching online for articles that can help me. There is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job! fake id

    ReplyDelete
  8. I must say that the articles in this blog are very interesting to read. The second one, I must say this blog loads a lot quicker then most. 4x4 Accessories Online

    ReplyDelete
  9. I really enjoyed this article as it pointed out a bunch of interesting points and made me think a little bit differently about the issue. Tilbud til ledige

    ReplyDelete
  10. I really love this article. It is filled with great enthusiasm, passion and great excitement. Full Mount Fish Replicas

    ReplyDelete
  11. I want you to thank for your time of this wonderful read!!! I definitely enjoy every little bit of it and I have you bookmarked to check out new stuff of your blog a must read blog!! Lotto Results

    ReplyDelete
  12. I wish to show thanks to you just for bailing me out of this particular trouble.As a result of checking through the the net and meeting techniques that were not productive, I was thinking my life was done. Monogram Clutch Australia

    ReplyDelete
  13. Interesting articles are published here. By reading it I acquired great deal of knowledge on various subject. Thank you for sharing with us. Gate Automation

    ReplyDelete
  14. Excellent!! This One Blog Is Awesome, thanks for sharing this impotent Information Please share me aboutFinancial advisory company

    ReplyDelete
  15. This is such a great information for me, because i do an online job that's why i need fast Internet connection, i search how to bots internet speed then i reach at a right place. KBF Best Holidays Packages

    ReplyDelete
  16. I really love this article. It is filled with great enthusiasm, passion and great excitement. bath towel set

    ReplyDelete
  17. It is perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you few interesting things or tips. Perhaps you could write next articles referring to this article. I want to read more things about it! Occupational Therapy Services

    ReplyDelete
  18. I was very impressed with all your posts. It all has added insight for me. Hopefully your blog more successful. hospitality digital signage

    ReplyDelete
  19. Great post i must say and thanks for the information. Education is definitely a sticky subject. However, is still among the leading topics of our time. mobile car cleaning perth

    ReplyDelete
  20. The world is changing fast. people are also being changed.day by day we are becoming more dependent on digital system.you make me think of this really.You have a nice way of sharing your thoughts. organizadores de eventos

    ReplyDelete
  21. This article gives the light in which we can observe the reality. This is very nice one and gives in depth information. Thanks for this nice article. حلول اسئله الكتاب

    ReplyDelete
  22. This is a truly good site post. Not too many people would actually, the way you just did. Health Supplements Singapore

    ReplyDelete
  23. Such a convey is for the most part a straightforward understand to discover in a general sense advantageous with no creating essentially calls for in close nearness to. Astounding operation! People explore to the past outcome extraordinary solid inconveniences honestly right now there. I did as such a radical new decide concerning each individual on a very basic level watched for all intents and purposes all model's could take your site. Burkina-Faso License Plate embossed with custom number or text

    ReplyDelete
  24. Exciting blog posting! Simply put your blog post to my favorite blog list and will look forward for additional updates. BRAIDED WIGS

    ReplyDelete
  25. I have to voice my passion for your sharpness in writing and giving acknowledges to people. The post should have magnificent guidance on this important matter. 4 Seasons Swing Chair

    ReplyDelete
  26. Thank you very much for sharing the best travel updates tips and providing the top travel attractions photography. If you want to do explore the best tours and activities. Click Here:- https://samedaytoursin.blogspot.com

    ReplyDelete
  27. I just stumbled upon your chatty blog and desired to say that I have really enjoyed reading your very well written blog posts. I will be your frequent visitor, that's for sure. Environmental market research firm

    ReplyDelete
  28. A different superb case about growth, I am content to track down which. You will see a lot of developers doing the job absent only at that distinct information nonetheless this is just about the best revolutionary idea previously. Cheers intended for providing which the following. Aerospace Women's Clothing

    ReplyDelete
  29. An individual produce a great place is likely to shutting sentence. Every one of us couldn’t consent a lot more together with your issues. Within today’s modern day world, your own personal procedure for this kind of problem could be lower in today’s kids. سيارات جديدة في الولايات المتحدة

    ReplyDelete
  30. As i have been browsing web and also the good thing is came on this website and also found rather enjoyable issues the following. The actual honestly satisfaction to learn to read. As i relished a good deal. Cheers intended for providing this wonderful facts. تقويم الأسنان

    ReplyDelete
  31. As i researed valuable home elevators the following as i feel doing the job absent at a kind business. Thanks publishing effective facts and now becoming much simpler to do this job. برنامج إدارة محلات الخياطة

    ReplyDelete
  32. Beautiful web site and also I am thinking about and also the number of create. I just now enjoy Blog Engine furthermore. flax seed butter

    ReplyDelete
  33. "Dear Admin,
    I am Jamal Lloyd Johnson. Very informative post! I am thankful to you for providing this unique information.
    Jamal Lloyd Johnson
    Apollo Management:Mail: 1236 N. Sweetzer Ave, unit 17
    West Hollywood, CA 90069
    Jamal Lloyd Johnson
    Jamal Lloyd Johnson
    Jamal Lloyd Johnson
    Jamal Lloyd Johnson"

    ReplyDelete
  34. Excellent travel blog information about the world's best luxury hotels and enjoy the most famous tourist places in India. Book the perfect journey in India which completes your travel needs to do
    Golden Triangle Tour Packages
    Delhi to Agra Tour
    Taj Mahal Tour Packages
    Same Day Agra Tour by train
    Agra One Day Tour Package

    ReplyDelete
  35. This is one of the best blog because, there are lot of informative postings. Thank you very much for posting and sharing this great article. Macbook repair

    ReplyDelete
  36. This is the wonderful write-up in the enjoyable type of material. Cheers intended for providing this information, great suggests about deliver this issue to be able to talk. slip-on shoe

    ReplyDelete
  37. Whoa! Such a incredible write-up this really is. This write-up could be way too damn effective. My spouse and i seriously find it irresistible with the technique you've got composited your own personal submitting can be fantastic. Hold producing boys party clothes

    ReplyDelete
  38. Quality articles is the important to attract the people to pay a visit the website, that's what this web site is providing. This is wonderful information. Loved reading it. Thank you for sharing. Sex Hookup Sites

    ReplyDelete
  39. I haven’t any word to appreciate this post.....Really i am from this post....the person who create this post it was a great human..such a nice blog i like it so much. Casino Games

    ReplyDelete
  40. Your style is unique in comparison to other people I've read stuff from. Thanks for posting when you've got the opportunity, Guess I'll just book mark this site.

    Solution Manual For Science

    ReplyDelete
  41. It was a beneficial workout for me to go through your webpage. It definitely stretches the limits with the mind when you go through very good info and make an effort to interpret it properly. I am going to glance up this web site usually on my PC. Thanks for sharing! Slot Machine Games

    ReplyDelete
  42. In kolkata Rose did have sex with a person who was present in the chit fund scam. The case was highlighted in Rose valley group by cbi official.

    https://www.dnaindia.com/india/report-kolkata-cbi-summons-st-xavier-s-principal-felix-raj-in-connection-with-rose-valley-chit-fund-scam-2289583

    ReplyDelete

  43. Interesting story in kolkata...How Rose did have sex with a person who was present in the chit fund scam. The case was highlighted in Rose valley group by official person.

    https://www.dnaindia.com/india/report-kolkata-cbi-summons-st-xavier-s-principal-felix-raj-in-connection-with-rose-valley-chit-fund-scam-2289583


    ReplyDelete
  44. From time to time after you eventually innovate, anybody create errors. It is really far better to get they're going to swiftly, to find within joined having maximizing your specific additional changes. The wholesale formula review

    ReplyDelete
  45. We are one of the best financial comparison platforms in Canada. We are on a mission to provide the best mortgage rate by making a virtual comparison between different rates offered by various lenders and top mortgage brokers of Canada. Top Mortgage Brokers of Canada

    Contact us: 🕸️: www.ratetrade.ca 📞: (905) 676 0008 📩: info@ratetrade.ca

    ReplyDelete