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wish you could spend on what you love and still save money welcome back to okay Monday Iamp;#39;m Sarah your Trail Guide through the forest of Finance today weamp;#39;re going to simplify budgeting using the popular 503020 rule whether youamp;#39;re just starting out or looking for a better way to manage your money this is the video for you so letamp;#39;s get started what is the 503020 rule the 503020 rule R is a straightforward budgeting technique where you divide your after tax income into three categories 50% for essential expenses 30% for discretionary fund spending and 20% for saving and investing why does the 503020 method work first thereamp;#39;s room for pleasure and play in your budget even if you end up adjusting this so that your discretionary spend is less than 30% itamp;#39;s important to have room in your budget for enjoyment this balance helps you stick to your budget if you allocate everything to saving and investing and kind of the well I think itamp;#39;s fun
