Final answer:
The 50-20-30 rule is a simple framework for budgeting and saving, making it easy for beginners to allocate their income. It helps prioritize expenses and savings, leading to a better understanding of financial situations and the ability to achieve goals.
Step-by-step explanation:
The 50-20-30 rule is easy for people to follow, especially those who are new to budgeting and saving, because it provides a simple framework for allocating their income. The rule suggests that 50% of their income should be spent on needs, such as rent and groceries, 20% should be saved for future goals, and 30% can be used for wants, like dining out or entertainment.
This rule is beneficial for beginners as it helps them prioritize their expenses and savings in a clear and manageable way. By following this rule, individuals can gain a better understanding of their financial situation, develop healthy spending habits, and gradually work towards achieving their financial goals.
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