A simple rule of budgeting that can help you get rich

If you find yourself with no money in your account before the month ends, you need to start making a budget to handle expenses. The 50/30/20 can prove beneficial in this regard. 

Elizabeth Warren introduced this budget rule in her book titled ‘All Your Worth: The Ultimate Lifetime Money Plan.’
 

The 50/30/20 formula, as proposed by Elizabeth Warren, divides salary into thee parts: needs, wants, and savings. 

The 50% of your income should be allocated to covering expenses like bills, your child’s educational expenses, house rent, EMIs, insurance premiums etc.
 

The 30% of your income can be spent on wants i.e., things like watching movies, visiting the salon, shopping, indulging in hobbies and more. 
 

The remaining 20% should be allocated for savings. This money should be invested in long-term financial goals such as retirement planning, children’s education and more.