Mastering the 30-70 Rule: A Guide to Effective Management

70-30 Financial rule for effective money management:

In the previous post we discussed 50-30-20 rule which is recommended for beginners now in this post we are gonna discuss about another financial rule which is 70-30 rule. 

What refers 70-30 rule? 

Explanation:

According to 70-30 rule we can spend only 70% of our net income on our expenses , whatever like EMIs , wants, needs and etc,. 

Net income refers to the cash that leftover after deduction of all taxes

And next remaining  30% of our net income we should allocate to savings and investments consistently. 

Now you may get the question who has to follow which rule , the rule 50-30-20 is recommended for the beginners to create financial discipline and to inculcate investment habit & the rule 70-30 is recommended for the people who are already aware of investment and who want to create huge wealth. 

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