Be Realistic



Sometimes, setting unrealistic goals means you end up worse off than before. For example, saving half of your income would help you achieve a savings goal in a shorter time. That may be ideal, but If that meant you couldn’t pay back costly debts and you couldn’t cover your essential bills, it wouldn’t be practical.
There’s a popular budgeting rule called the ‘50/30/20’ rule, where 50% of your income would go towards your needs, such as bills; 30% towards your wants, like holidays; and 20% towards your savings. While this is a well-known technique, it might not work for you – and that’s okay. Your budget should work for you, not the other way around. It doesn’t matter if you find yourself spending or saving more (or less) than others – the important part is that you can afford what you do.