If you are having trouble distributing your salary and following the monthly budget, you should find a way to help you manage your finances in proportion to your monthly salary.
Among these methods is to follow the rule «50-30-20» to divide the monthly salary that is effective in managing the budget, and to provide a surplus that contributes to increasing savings and reducing financial pressures, by dividing the monthly income into three parts that are allocated to basic and variable expenses and savings and investment plans Future, according to financial guidelines provided by the Saudi Arabian Monetary Agency on its website.
The "20-30-20" rule helps individuals manage their monthly budget by setting an actual framework for financial obligations and monthly expenditures, in addition to allocating part of the salary to achieve their future financial goals, whether they are savings or investment without a budget deficit, or increasing the size of the monthly expenses from It is specific to him.
Once received, the monthly salary is divided into three parts. The first part is to allocate 50% of the salary to the basic fixed expenses that meet the monthly needs such as electricity and water bills, education expenses, health care, transportation, and communications.
30% of the salary is allocated to variable expenses; it may be expressed as luxuries that contribute to raising the standard of living well-being, such as shopping, leisure activities, excursions and gifts.
Finally, allocating at least 20% of the salary to future financial plans such as increasing savings, accelerating debt repayment, adopting an investment plan, or saving for emergencies.