Question

According to the 50-30-20 rule, a good savings target is.

percent of income.
A. 20
OB. 50
O C. 10
OD. 30
SUBINT
W

Answer 1

The 50-30-20 rule suggests that one should save 20 percent of their income, ensuring a balance between expenses, discretionary spending, and savings for future financial security. The correct option is (A).

Step-by-step explanation:

According to the 50-30-20 rule for budgeting, a good savings target is 20 percent of income. This budgeting principle suggests that you should allocate 50% of your income to necessities, 30% to discretionary items, and 20% towards savings. This simple budgeting framework can help create a balanced financial plan, ensuring that you are prepared for the future while still being able to cover current expenses and enjoy some discretionary spending.