Streaming issues? Report here
John Perlman 1500 x 1500 2020 John Perlman 1500 x 1500 2020
Afternoon Drive with John Perlman
15:00 - 18:00
volume_up
volume_mute

Up Next: The Money Show with Bruce Whitfield
See full line-up
Afternoon Drive with John Perlman
15:00 - 18:00
Home
arrow_forward
Lifestyle

30/30/40 - the budget rule that'll help you better allocate your monthly income

12 January 2020 11:54 AM
Tags:
Money
Debt
Income
Paul Roelofse
budgeting
Certified Financial Planner
salary

Certified financial planner Paul Roelofse explains the 30/30/40 rule and offers advice on how to budget better.

It's not about how much you earn, it's about how you use it.

Certified financial planner Paul Roelofse says 30/30/40 is the ideal spending formula to help South African households get their finances in order.

He explains how the 30/30/40 rule works and how to allocate your income wisely after tax.

It's a very simple idea on how one could and should allocate your income.

Paul Roelofse, Certified financial planner
  • 30% allocated to life-changing events and provisions

This includes life insurance, pensions funds and saving for the future. Putting this money away can give you peace of mind, he advises.

  • 30% allocated to car loans, debt, credit cards etc.

Roelofse says debt exposure for any family should not exceed 30% of the household income. Paying this money off can be the hardest part. The expert says this percentage should be a target that all families work towards.

  • 40% allocated to the rest of your living expenses.

This includes groceries, education and other monthly expenses, Roelofse explains.

Listen to the expert financial advice for more:


12 January 2020 11:54 AM
Tags:
Money
Debt
Income
Paul Roelofse
budgeting
Certified Financial Planner
salary

More from Lifestyle

Happy smiling boys poor poverty child 123rf 123rfbusiness

'I grew up poor, but never realised it'

21 September 2020 8:15 PM

Bruce Whitfield interviews Ciko Thomas (Nedbank) about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

tsitsijpg

Dangarembga shortlisted for Booker Prize: 'I like my writing to be relevant'

21 September 2020 4:52 PM

Author and activist Tsitsi Dangarembga says her writing does not come easily and that she likes her writing to be relevant.

Share this:
Read More arrow_forward

matric-exams-unsplash-jeshootsjpg

Matric Roadmap: Take control of your exams

21 September 2020 8:00 AM

Matriculants, get ready for the forthcoming exam season and safeguard your future by attending the AAA Matric Revision Programme.

Share this:
Read More arrow_forward

itu-merafejpg

COVID-19 turns ballet dancer and choreographer into online fitness maestro

20 September 2020 4:18 PM

Ipeleng Merafe and friends from the US, UK, Israel, Reunion Island and other places collaborate and share their experiences.

Share this:
Read More arrow_forward

car motoring 123rf

'Don't overspend on a car purchase - smaller and cheaper equals better value!'

17 September 2020 9:12 PM

Low interest rates and plenty of deals on offer - personal finance guru Warren Ingram points out the pitfalls on The Money Show.

Share this:
Read More arrow_forward

Young man youth teenager teen boy credit card 123rf 123rfbusiness 123rflifestyle

I’ve never been interested in money - Cameron (11), son of Bruce Whitfield

15 September 2020 11:29 AM

"It's brilliant! The jokes are actually funny," says Cameron in his review of "Manage Your Money Like a Grownup".

Share this:
Read More arrow_forward

John Perlman

'We lived in a big house with a pool. But my parents were anxious about money'

14 September 2020 8:08 PM

Bruce Whitfield interviews 702 presenter John Perlman about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

Fear businessman storm ocean 123rf 123rfbusiness

Foreigners – fearful of SA’s spiralling debt – are dumping government bonds

14 September 2020 7:14 PM

The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.

Share this:
Read More arrow_forward

ZDFin

New specialist property financier, ZDFin to bridge the gap for community schemes

14 September 2020 7:30 AM

Looking for bridging finance and smart financial solutions for community schemes? Keep reading.

Share this:
Read More arrow_forward

Lockdown levels South Africa Covid-19 coronavirus 123rf

We need a paradigm shift in how we view the creative industry - Sibongile Mngoma

13 September 2020 11:43 AM

Sibongile Mngoma says a budget must be factored in to help venues to be covid-compliant so we can open the industry responsibly.

Share this:
Read More arrow_forward