Hello community,

In the last postof this series I spoke of the 50/30/20 rule as a formula to guide the allocation of monthly income to different categories, with a view to accumulating assets without compromising financial responsibilities and (some) more "superfluous" we are not machines and we want a realistic budget!)

Today, the will to speak goes to something not different from the 50/30/20 rule of an influencer that is very dear to me. A TED Talks, Conferences, Conferences, Contest, TED Talks, Conferences, Conditional Theses and Commerced Thesis with Curiosity Management and Realism I speak of Nathalia Arcuri

In the first steps of my financial education, "Nath" was there from the beginning. His way of providing knowledge in an unorthodox style, somewhat comical, but very direct and uncomplicated, is the perfect formula to attract so many followers. And the truth is that your company, according to her, does not stop growing!

The Recepie for Success according to Nathalia Arcuri

In one of her videos, to which I leave the link in the subtitle above, Nathalia presents as a reformulated version of Rule 50/30/20. And what does the rule consist of? In a very simple way, it consists of dividing the monthly income into installments, each one destined to a certain set of purposes:

Percenbtage	Cathegory
55%	Essencial
20%	Objectives
10%	Retirement
5%	Education
10%	"Wants"

How to apply this formula?

For starters, a pencil, paper, and calculator to do the calculations are enough. However, a spreadsheet in Excel makes the task a lot easier. Even to experiment and simulate with variations of these percentages.

First, take note of the total amount of monthly income, after taxes. This step is obvious but has to be said. Then take note of all the monthly expenses, of fixed or estimated value close to a realistic value.

Withdraw 30%: 10% for retirement + 20% for objectives

Of the total amount we must immediately withdraw, to another account (savings and investment, or another of our preference) 10% for retirement that should be rendered in the long term and with capitalization of interest. And 20% for objectives that, according to Nathalia, can be classified as short term (up to 2 years), medium (between 2 and 7 years), and long term (over 8 years). These objectives may include the establishment of an emergency fund, an investment, or the acquisition of some property (home, car, household repairs, etc.).

Essentials: 55%

Aqui deverão caber todos os gastos considerados essenciais. Renda de casa ou prestação, contas de água, electricidade e gás, combustível, transportes, alimentação, despesas com os filhos, cabeleireiro, lavandaria, internet, telefone e telemóvel. Enfim, tudo o que é essencial para a nossa sobrevivência. Se é essencial tem que caber nesta percentagem da renda mensal. Se não é essencial, cai para a próxima categoria...

"Wants": 10%

In this category you do not need to explain. Evenings, bars, restaurants, books, movies, or anything else you want, as long as it does not exceed 10% of your monthly income. This is a great way to maintain a realistic budget, preserve dignity, happiness, some freedom, and sincerely, SANITY;)

Education: 5%

This last category, although receiving the smaller portion, is perhaps the most valuable in the long run. Education implies our appreciation in the market. It increases our ability to do more and better. If the market value increases, we gain more, and so also the absolute values that we will allocate to each category are higher.

To complete

As I have said before, this type of rules should serve primarily as a guideline for the financial management of each. There is no "golden rule" that is perfectly suited for all cases. If it serves, it loses in specificity and depth. So I can not apply the rule for the moment. I realized that in order to do this, I have to sacrifice some "land" in one of the categories to achieve 55% of the essential, since my management is already as frugal as possible. On the other hand, I can try to increase monthly income to accommodate these limits. For this will be necessary to invest the value destined to education increasing my market value. Using my case as an example, there are no magic formulas for quick licit enrichment. It is preferable to increase the estate slowly but consistently.