07/10/2020
Budget Tips
1. Pay yourself first.
Income - SAVINGS = Expenses
2. Set a Budget and Stick to it.
Use the 50/30/20 rule
50%= Needs
30%= Wants
20%= Savings and Investment
3. Prioritize Needs over Wants.
Before buying something, ask yourself if it is really, really, really need it???
4. Live within your means.
If you cannot buy it in cash, you cannot afford it yet.
5. Manage Good Debts and Bad Debts.
a) Good Debts = Debts that are used to acquire something to generate an income or cash flow.
b) Bad Debts = Debts that doesn't add anything to your income and your cashflow. Debts that you acquired because of acquiring something that doesn't have lasting value.