How to save money from your salary? Financial rules for beginners 50-30-20 rule of money

Financial planning must be started as early as possible. Beginners can follow 50-30-20 rule of money to become rich. In this article we will understand how much money you can spend in your basic needs and wants and how much money you should save or invest. 

50-30-20 rule of money. 

Basic rule is whatever is your monthly salary you should follow 50-30-20 rule of money. Let's see 

• 50% of your salary  you should spend in your basic needs like rent/home loan EMI, transportation,bills,food, internet etc. And try to limit your expenses.
• Then 30% of your salary should spend in wants. You should know the difference between needs and wants. Wants is not your basic necessity. For example instead of car you can use public transport, branded clothes, expensive watches, new gadgets etc. So these are your wants and wishes. 
• Last 20% of your salary definitely go for savings and investment. You should save some money in bank because of medical emergency or some other emergency situation. And you can invest your money in different asset class like mutual funds, stocks,gold etc. Then when you are young you also have advantage take to some risk. And in your Early age you should focus to create multiple income sources. 
•  So in conclusion, you have multiple options of investing- fixed deposit, post office schemes, insurance, provident fund etc. But you must make financial discipline and do financial planning right at the start of your carrier.so what is your investing strategy? Let us know in the comment section. For more updates click this link http://mudrainvest.com