30/30/40 - the budget rule that'll help you better allocate your monthly income
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:
Bruce Whitfield interviews Ciko Thomas (Nedbank) about his attitude to money (hopes and fears, successes and failures, etc.).Read More
Author and activist Tsitsi Dangarembga says her writing does not come easily and that she likes her writing to be relevant.Read More
Matriculants, get ready for the forthcoming exam season and safeguard your future by attending the AAA Matric Revision Programme.Read More
Ipeleng Merafe and friends from the US, UK, Israel, Reunion Island and other places collaborate and share their experiences.Read More
Low interest rates and plenty of deals on offer - personal finance guru Warren Ingram points out the pitfalls on The Money Show.Read More
"It's brilliant! The jokes are actually funny," says Cameron in his review of "Manage Your Money Like a Grownup".Read More
Bruce Whitfield interviews 702 presenter John Perlman about his attitude to money (hopes and fears, successes and failures, etc.).Read More
The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.Read More
Looking for bridging finance and smart financial solutions for community schemes? Keep reading.Read More
Sibongile Mngoma says a budget must be factored in to help venues to be covid-compliant so we can open the industry responsibly.Read More