33.8k views
2 votes
One popular spending plan allocates your after-tax dollars as follows: 50% for necessities, 30% for wants, and 20% for early debt repayment, savings, & investment. True or False?

User Baskin
by
7.8k points

1 Answer

3 votes

Final answer:

The statement about the popular 50/30/20 budget rule for allocating after-tax income towards necessities, wants, and savings or debt repayment is true. This rule is a commonly used guideline for personal finance management.

Step-by-step explanation:

The statement that a popular spending plan allocates your after-tax dollars as follows: 50% for necessities, 30% for wants, and 20% for early debt repayment, savings, & investment is indeed a true representation of a commonly used personal finance guideline known as the 50/30/20 rule. This rule serves as a framework to help individuals manage their finances by allocating their disposable income towards essential expenses, personal desires, and financial goals.

User Bobby King
by
7.5k points