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 breakdown of how to spend income is honestly well thought out and practical. It gives a sense of order to how we handle money. But like you rightly pointed out, the real struggle shows up when someone income is so low that even the basic necessities take up everything they earn and sometimes, it is still not enough.
The truth is, not everyone can fit into that kind of percentage model. Someone earning very little might find that feeding their family, paying rent, or handling transport takes the whole income. So, instead of holding on tightly to spending only 50% on basic needs, what matters more is learning how to live within what you earn not outside of it.
If someone knows their income can not support a $1,000 rent, they should not feel pressured. It is wiser to go for a $500–$700 option. The same thinking should apply to every other aspect of spending, buy what you can afford, not what the world expects you to afford. It is not about being cheap, it’s about being real.
And for those whose income does not leave room for saving or investing after covering essentials, it doesn’t mean they are stuck forever. The important thing is to find ways to reduce unnecessary expenses and look for other means of adding to that income. Whether it is using any skill you already have or finding something extra you can do in your free time, there are always small steps you can take.
So yes, your structure is valid and helpful, but it is also important to remind people that the journey is different for everyone. It is not about following a fixed rule it’s about being honest with where you are, making smart decisions, and finding small ways to move forward.