After a few days of discussion, I understood how to spend the earned money in the right way and what kind of fund should be formed with the remaining money.
I have summarized what I understood in this regard below so that it is easy for others to understand -
▪️Proper structure of spending earned money
🔹 Basic needs: In this case, 50 percent of the earned income should be spent.
The areas of expenditure are-
. Food
. Clothing
. Housing
. Education
. Medical care
. Transportation
. Electricity bills, gas bills, etc.
🔹 Savings and investments: Here, a minimum budget of (30-40)% of the income should be kept.
Types of savings and investment funds-
. Emergency fund
. Pension or retirement fund
. Investment in gold or stock market
. Investment in cryptocurrency or Bitcoin
🔹 Entertainment and social expenses: In this case, 5% of the income can be spent.
. Travel
. Eating out at restaurants
. Gifts
. Expenses at social events, etc.
🔹 Some budget can be kept for personal development, donations and social service and other areas.
Now the question may arise, how can those who earn a small amount of money meet their basic expenses with 50% of their income?
In fact, everything is possible if you spend according to your income.
Your division is a very good one however just like you said that question may arise, that how can those who earn a small amount of money meet their basic expenses with 50% of their income.
There are people whose earnings are very small that there expenses on there basic needs which is for there
. Food
. Clothing
. Housing
. Education
. Medical care
. Transportation
. Electricity bills, gas bills, etc.
Are takes all there income for some people it will take all there income and still not be enough, so just like you said Bluedrem that everything is possible if you spend according to your income, people should learn to spend according to there earn so they won't get into a financial set back.
In life we have different options, if you know your earnings can't afford a house rent of $1k then fine an apartment of $500 or $700 so you can save cost so also in everything you are doing.