Your first salary hits the account and you want to buy everything you could not before. Before you splurge, here is how to budget so you do not go broke by month end.
The 50/30/20 Rule
- 50% Needs: rent, food, transport
- 30% Wants: entertainment, hanging out, shopping
- 20% Savings & Investing: pay yourself first
Separate Your Accounts
Create three accounts: daily, savings, and emergency. Transfer automatically on payday.
Build an Emergency Fund First
Before investing, save 3-6 months of expenses as your safety net.