Managing your money takes just a few steps, says Scott Pape of the Herald Sun.
Pape says that a bit of time spent allocating a household’s income properly is well worth the small amount of effort. His 60-20-20 strategy can be used by households to ensure bills are covered, debts are repaid and savings accumulated. All this is possible whilst still having money to spend each month, Pape says, adding that this is the key to the plan’s success as it doesn’t rely on deprivation or the feeling of being on a financial ‘diet’.
The 60-20-20 plan takes around ten minutes to set up before largely taking care of itself. Pape recommends putting 60% of take home pay into a bank account allocated for regular bills and other essential living expenses. 20% goes towards paying off debt, and then into a dedicated savings account. The remaining 20% is for splurging on enjoyable nonessentials.
Source: http://www.heraldsun.com.au/business/the-60-20-20-plan-turns-budgeting-on-its-head-and-brings-you-peace-of-mind/story-fni0dcne-1226639696320
