Income Distribution Method

GET-RICH    January 23, 2022   

Income Distribution Method

Senator Elizabeth Warren promoted the so-called "50/20/30 budget rule" in her book, All Your Worth: The Ultimate Lifetime Money Plan. This rule is based on the salary division model, to 50% on needs, 30% on wishes, and 20% in savings.

Salary division model

50% living needs

Requirements include your necessary living expenses and invoices you are required to pay, such as rental or mortgage payments, car expenses, grocery stores, insurance, health care, etc. The "Needs" category does not include additional items such as Netflix, Starbucks, and dining abroad.

Half of your income must be all you need to cover your living needs and obligations. If you're spending more on your needs, you'll need to rationalize your needs or try to reduce your lifestyle, perhaps by moving into a smaller house or an economy car, or cooking at home instead of eating out.<ref>What is the 50/20/30 Budget Rule? Investopedia. 2021-12-17.

30% desires and accessories

Desires and luxuries are all those improvements that make your life easier and those extras you spend money on to make your life more fun. This category includes the costs of eating out, watching new movies and clothes, vacations, and the Internet. You can save, for example, by exercising at home instead of going to the gym, cooking instead of eating out, or watching sports on TV instead of getting tickets to the game.

20% savings

Finally, try to allocate 20% of your net income to savings and investment. This includes adding funds to the emergency fund in the bank savings account and possibly investing in shares, etc. You must have enough savings to cover at least three months in case your job is lost or an unexpected event occurs.Don't forget to focus on retirement and achieving other financial goals in the future as well. If emergency funds are drained, the first allocation of additional income should be to renew the emergency fund account in anticipation of what may happen.

Rule 50-20-30 aims to help individuals manage their income. Each family must prioritize the establishment of an emergency fund in the event of loss of employment, medical expenses, or any other unexpected financial cost. If the emergency fund is used, the family should focus on renovating it.

Summary

Splitting salary is not easy, and life often throws unexpected expenses at us. But thanks to a 50-20-30 salary division model, individuals have a budget and financial plan that effectively manages their income. If they find that their needs expenses are more than 20%, for example, they can find ways to reduce those expenses and then direct funds to more important areas such as emergency funds and retirement.

5 easy ways to save money

5 easy ways to save money

GET-RICH    January 19, 2022   

5 easy ways to save money

Saving money is a real and a chronic dilemma for many people, but it's not impossible if you find a way to suit your circumstances and personality.

In a report published in the Spanish magazine TechBit, author Andrea Nunez outlined five of the most widespread and effective ways when it comes to leaving part of monthly financial income and improving financial management.

Modern technologies are now used in all areas of life and can also be used to address the problem of saving money, the author says, most notably the emergence of mobile applications to regulate and encourage this, and to solve the problems of the savings that people have faced since the advent of money as a means of business transactions.

The aim of saving may be to ensure a good standard of living when referring to retirement, to save on the costs of making a dream trip, to invest in a business, or to the anticipation of expenses and emergencies.

1-Japanese way "Kakibo"

This traditional method, which appeared in Japan, also known as the "home account book", revolutionized financial savings, and has been talked about by many writers in Western countries, and advised by economists.

It is a bookkeeping to record all expenses and incomes, which enables you to think about your habits, learn how to save, and improve your financial management skills.

At the beginning of the month, you write down a certain amount of income and expenses, how much you want to save for and the various expenses you may face this month, then start recording every amount you spend and then look at your balancer.

The Japanese consider that the Kakibo method not only enables them to save money, but also gives them psychological calm.

Modern apps you can use to help save money

2-piggy bank

This method is old, requires the purchase of a sturdy, large-sized shop, and then you start throwing coins and small amounts that the seller returns to you or what's left in your pocket when you go out shopping and don't allow yourself to open or break the meat until it's full.

You can use several methods of saving, by placing only coins or putting 10% of the banknotes inside the mat, and you'll be surprised by the amount you've collected when your pebble is full and you bring a hammer until you break it.

3-52-week challenge

This method is very widespread in Anglo-Saxon countries, and it is to save money on an upward trend every week since if you save only $1 in the first week, you are in the second week saving $2, then three, and so on.

In this way, the amount you will save will increase each week, as it will exceed $200 in the last month of the year, and can also be done in this way, but inversely, by starting with large amounts and ending with $1, which may simply enable you to save $1,378 a year.

4-Hard Iker Method

In his book Secrets of the Millionaire's Mind, Canadian writer Harf Iker proposes a simple system for distributing monthly incomes based on percentages, which must be divided every month as follows:

55% for basic needs and necessary facilities, such as rent, bills, bank premiums, and food.

10% savings, which is untouchable, and will enable you to raise money over time.

10% for sports and personal development, by purchasing, sports equipment, attending courses and events, and buying books.

10% for long-term investments, which are the huge expenses you may face in the future, such as getting a driver's license, going on a family trip, or renovating home furniture.

10% for entertainment and enjoyment, and 5% of donations.

Thinking about your habits and improving your financial management skills helps you save

5-The way the envelope

This method aims to improve your ability to dispose of the home economy, which has been in use for many decades and requires you to raise all the money in one place and calculate your expenses throughout the month, after which you must decide how to divide the money, but each amount in an envelope and write down its destination.

Once the money is organized and divided in this way you will know how much is left in your balance to cover basic expenses and how much you have for entertainment and secondary things.

7 smart and simple ways to save money when shopping

7 smart and simple ways to save money when shopping

GET-RICH    January 18, 2022   

7 smart and simple ways to save money when shopping

The Corona pandemic posed a financial challenge for all, from adapting to working from home to meet difficult future budgetary challenges, planning emergency funds, and living under turbulent economic conditions. Perhaps the last thing we would like to spend our money on is groceries.

In her report published in the American magazine Real Simple, writer Betty Gould said preparing food at home can save you a lot of money. If you want to save money when shopping for food, you can follow these genius tips and tricks provided by savings expert Lorne Grossman.

1-Prepare a weekly meal plan

You should develop a strategy before shopping. Select the meals you'll make during the week, and then don't need them on your phone's grocery list. In this way, you will avoid unnecessary purchases, reduce food waste, and spend less time shopping.

You can also prepare enough food for another meal. If you plan correctly, you can save your food and savings for several days.

2-Check out the supply room before shopping

It's important to check supplies before going shopping 

3-Plan your meals according to discount offers

"The big mistake people make is to shop automatically," Grossman said. Many people don't browse sales publications to plan their meals according to the products included in the discounts. Grossman said she likes to plan her meals according to the food offered for the cuts that week, such as choosing salmon for food if it is included in a reduction.

4-Get a grocery delivery service

Grocery delivery services allow you to shop while you're at work, and within 2 hours, everything you need to prepare your weekly meals will get you home.

5-Don't ignore filter cuts

The author stated that stores always filter inventory to provide space for new products, where the reduced rate can be as high as 50% or more. Just check the expiration dates.

6-Use basic ingredients

Remember that you can be creative in using basic components instead of focusing on special items. Instead of buying an ingredient you can use for just one meal, buy a range of basic and affordable ingredients and consider the recipes you can use.

7-Buy in bulk and what you can only use

Grossman says buying foods such as rice, cereals, and dried fruit in bulk can save you at least 30% of the money.

About Get-rich

About Get-rich

GET-RICH    December 21, 2021   

About website Get-rich

The Basics

Do not visit here unless you seriously want to know how to get rich because you won't want to hear what we have to say. Are you ready to listen?
There are basic, simple steps upon which everyone can get rich - given time. So, this is not get rich quick, but where did all those get rich quick schemes get us any way? This is not based on luck like Get Rich Quick is for the majority of people. It is based on "Anyone can Get Rich". So let us proceed slowly and Get Rich in 3 basic steps...1...2...3...

1. Economic Choice

When you have 1 dollar you can spend it or you can save it. There are a few variations like where you spend it or how you save it but essentially it is as simple as - spend or save.

2. Compound Interest

1 million dollars will get you 60 thousand dollars interest. Compound interest is often called the 8th Wonder of the World but it is also often dismissed because it takes time. Small numbers seem stupid and children are not impressed with their return but saying 1 million dollars will get you 60 thousand dollars in interest is does not sound so stupid.

3. Attitude Change

You need to change your attitude. Stop being a consumer. Buying something will not make you feel better. Possessions do not equal status. The person who has the most when they die is not the winner. How many TV's does one house need? How many DVD players does one family need? Get off the fashion bandwagon. Why are you paying 300 dollars or 15o dollars for jeans when you can get them for 40?
So these are the basics on How to Get Rich - slowly. If you want more stay around or bookmark this site and come back.

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