The budget of 50/30 / 20 budget is described in South African homes
In July the National Month of Savings and this is the right time to find real money. If your finances feel stretched, your debt promotes it, or more than monthly money, you are not alone. But there is a way forward and starts in one of the simple ways, the powerful budget tools used in the world that is the law of 50/30/20.
This simple budget list helped millions of people around the world to control their money, measure their needs and build their financial needs. It is especially powerful in South African homes that want to reset and regulate the hard economic climate.
What is the law of 50 / 30/20?
Is Simple, difficult program To separate the monthly income in three active buckets, that is:
- 50% for necessities: Important costs such as rent, food, electricity, transport and debt payments.
- 30% of the search: Way’s use of life as food, recreation and importance. Imagine taking, netflix, that new boss you checked
- 20% of conservation and debt repayment: To create an emergency fund, increase savings or pay off the debt as soon as possible.
It’s about the balance: Managing your obligations, enjoying your health and is still preparing for the future.
Synchronizing the Law when you are in debt
For many South Africans, debt consumes more than 60% of the income. The Law of 50/30 / 20 You may not feel impossible … but that is exactly where they are very strong.
Here is how you can apply the law when you are in the background or review of credit:
- Reduce the “requirements” at 10-15% or less.
- Redirect those funds to saving / credit category to increase credit payments or emergency.
- If you are under credit reviews or work with registered credit counselor, your payment system must already be the same placement.
The real example of life: The Act applicable
To get R10,000 / month:
- Requirements (50%) = R5,000 -> Renting, Food, Transport, electricity, small credit
- Want (30%) = R3,000 -> Takeways, entertainment, DSTV, recreation
- Savings / Credit (20%) = R2,000 -> Funding Fund + Fundal on Credit Return
If you are back in debt, you are looking for R1,000 and increase your savings line to R4,000 / month. This helps reduce interest and give you peace of mind.
You are not sure how you can check your credit report or straight your credit points? Check your free credit report at Report.Debtrue.co.za
What does it mean to be under credit reviews?
Credit review is a legal form of South Africans who are in debt. Registered Credit Counselor Examines your money and negotiating a reduced payment and debt system. You will be protected from Legal Action and start your trip to being a debt without losing your property.
If you are frustrated, debt review can be a very powerful tool that you do not look.
Life After Credit Review: Using the Act 50/30 / 20 to remain debt
The end of your credit review is not the end of your financial interest, it is the beginning of the new item.
This is where the law of 50/30/30 can be most helpful in life after credit reviews:
- Rebuild your savion tushion.
- Create a financial stability.
- Acquire financial freedom by planning.
You can also ask, How long after the credit review I have to apply for credit or buy a car? Once you have issued a permit certificate and your name removed from credit bureaus, you can start applying but caution.
To make a budget is not limits
Whether you just start, under credit reviews, or at the end of the debt, the law of 50/30/30 can help you manage your money, your Mindset, and your future.
Allow this monthly savings month to be your conversion place.
At Credit ResourcesWe helped South Africans to travel with financial pressure from the beginning of the sector. If you are trapped, we are here to guide you with professional advice, legal protection and real solutions.
