The YouTube video offers money management tips to understand the Financial 50/30/20 Rule. Only some can consult with certified financial planners about their financial future. However, this should be fine as there are various steps you can take to understand certain financial terms and improve your financial situation by making better financial moves.
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The Financial 50/30/20 Rule is a well-known budgeting guideline that is great for helping individuals manage their finances and allocate finances effectively.
The plan highlights how to spend your budget after deducting tax. For example, the first number in the rule, 50, stands for 50%, allocated to your most basic needs or the factors that maintain a certain standard of living, such as a mortgage, groceries, utilities, etc. The next 30% of your budget goes to the things you want, such as shopping, dining out, travel and vacation, and hobbies. The final 20% of your budget goes to debt and savings.
It's important to remember that while this is an excellent plan, you should leave room for flexibility to make it work, as you will only sometimes be able to strictly apply the rules to your financial situation. Furthermore, regularly review your budget and adjust it to stay on track. Finally, prioritize high-interest debt. It's imperative to pay off high-interest debt first and then move on to debt with lower interest rates.
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