The current family economy needs to have some savings for the correct functioning. We are no longer just talking about the unforeseen events that may arise throughout a lifetime (which can be many) but about being able to buy a house to live in and develop as adults.

Life is full of unexpected events that, on many occasions, involve spending a lot of money: household appliances that break, illnesses with very expensive medicines, trips and events that cannot be refused... to have enough savings, we recommend apply the 50-30-20 rule. Do you want to know what it consists of?

- 50: This number indicates the maximum percentage you should spend on basic products and services such as the mortgage or rent, food, gasoline, consumption bills (water, electricity, gas, internet...). It is important that, if with these expenses you do not reach 50% of your salary, do not allocate it to the leisure budget, but to the savings one.

- 30: Here come the expenses that we can consider leisure or whim, such as buying some clothes for fashion, going out with friends for a drink or with your partner for dinner, taking a trip... these are the things of life that we like the most and that give that necessary spark to avoid falling into an absolute routine. In the same way, if you have done everything you had planned for that month and you do not reach 30%, be careful and save it.

- 20: Savings. Life is full of unforeseen events, so it is necessary to have a savings cushion that can get you out of a jam. These contingencies can be more bearable things like breaking glasses or an appliance, celebrating a birthday... but then we can find ourselves with much bigger contingencies that can ruin our lives if we don't have money saved, for example, running out of money. work, the arrival of an unplanned baby, an illness...

For those cases in which the savings of the month are not enough to be able to buy what we want, such as a house, there is mortgage financing that lends you the money and you return it in the future in that 50% of the salary that you must spend on basic needs.

Finance of America Companies

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FOA

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