Many people start feeling depressed when it comes to budgeting. It’s usually associated with an unpleasant, difficult, or useless task. But we have a few tips that will turn your savings into a real phenomenon, not just a myth everyone knows about but has never seen.
6. The 20/80 method
Using this plan implies you’re able to do the following actions:
- Pay off all your debt and bank loans.
- Invest in a business or save around 20% of your monthly salary. This is the money that you can’t spend.
- Spend the other 80% of your salary in whatever way you want.
You should also remember that you should save first, then spend the rest. If 20% is too big of a number, try to start with 10% or at least 5%. This will help you develop a habit and create an initial saving’s fund.