Are you in financial difficulty and can’t break the cycle? Here’s how.
I don’t know about you, but having an income coming in safely at the end of the month for most of my working life has left me totally unprepared for the tough times.
I always had some form of savings, until, that is, I came across the latest collection at my favourite clothes boutiques, or discovered a sale at a beautiful interiors shop… so essentially that meant that I never had any savings.
It was only when I was saving up for something specific did I put any effort into saving (or paying back my credit cards with more than the minimum amount required). You’d think that having worked in the finance sector would have made me a little more savvy in the saving world; au contraire, working in credit made me more aware of how much easier it is to borrow than it is to save.
A popular way of splitting finances is 50/30/20 rule. US senator Elizabeth Warren, now running for President (and a Harvard bankruptcy expert in her own right), coined the term together with her daughter, Amelia Warren Tyagi in a book they co-authored in 2005 called ‘All Your Worth: The Ultimate Lifetime Money Plan.’
This entails splitting your disposable income (that is, your remaining income after all tax and social security amounts are deducted) into Needs (50%), Wants (30%)…
