HOW TO BUDGET/SAVE MONEY AS AN ENTREPRENEUR.



As an Entrepreneur, knowing how to budget and save your money is very important, in fact it is a criteria for becoming a successful Entrepreneur. In this article I will be introducing something really unique, so keep reading.





I'm going to introduce to you one very effective rule in saving and budgeting and this rule is called "THE 50, 30 AND 20 RULE"



THE 50, 30 AND 20 RULE

The 50, 30 and 20 rule is actually one of the simplest method to use when it comes to budgeting and saving money and I will explain it properly for you.


This rule implies that out of 100% of your salary/income, you are expected to spend 50% on your NEEDS, 30% on your WANTS, and then 20% for SAVINGS/INVESTMENTS. 


NEEDS are simply essential things you can not do without, and they include house rent, health insurance, utility, food and the list goes on.


WANTS are things you can actually do without, though they are required for a healthy life but whether you have them or not, you can still survive. They include new cloths, new phone, vacation, Netflix subscription and so on.


Lastly, SAVINGS or INVESTMENTS. Believe it or not, every big time Entrepreneur has savings. Their reason for this is in case of emergency, and also, In case of opportunities, they could strike it without having to get a loan or get into debt. You could also choose to invest, it all depends on your business level. You could still choose to invest 10% and save 10%. It's still okay.



I know what questions could be running through your mind right now, like "what if my salary/income is too small?" "What if I don't have any money at all, how do I start?". For the first question, if your salary/income is really that small, then make some more money, it's that simple. Avoid cutting down your budget all because you cannot afford something, if you can't afford it, ask your self "How can I afford this?" and then look for more income streams to make you more money. For the second question, I'll advice you check out my next article on "How to make money, with $0 capital".


IN CONCLUSION

This rule was created with the sole aim of helping Entrepreneurs avoid misusing their money, and also to encourage Entrepreneurs to always have savings so that opportunities won't pass them by. Cutting down your budget is a really bad habit to cultivate, instead, cultivate the habit of thinking of more investments to create multiple steams of income.


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