Pizza and 50-30-20 Budgeting Rule? A Money Hack that can ease your spending habits..


Want to know a money hack? Let's take a cue from a concept popularized by Elizabeth Warren in her book, "All your Worth : The Ultimate Lifetime Money Plan.


“If your after tax income looked like this cheesy (Omg, I need one right now) Pizza, then you need to allocate your money as follows - 50% on Needs, 30% on Wants, 20% on Savings


What are Needs?

“Needs are things needed for your survival. Eg : Rent, Electricity bills, Insurance, Health Care etc”

What are Wants?

“Wants are not so essential, but things you'd like to spend your money on. Eg: Netflix, Dining at a restaurant, PIZZA, Movies etc”

And, needless to say SAVE the remaining 20%


CA Shikha Rao says....

“Just as having only 30% of that Pizza slice (occasionally) will keep us fit, spending only 30% on "WANTS" will keep us FINANCIALLY FIT!

Well if I were to the creator of this rule, I think I would categorize PIZZA as "NEEDS". Right?


What should you do next?

The next pay check is around the corner. I suggest you spend some time this weekend trying to analyse your previous month expenses and classifying those into Needs and Wants, to see how you can do better? Get started :)


Lazy to read through? Watch this video :)



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Hi, thanks for stopping by!

I'm Shikha Rao, a Chartered Accountant and a Social Media Enthusiast.

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