In the world of business and technology, Bill Gates and Mark Zuckerberg are widely recognized figures, not only for their business successes, but also for their ability to manage their personal finances efficiently.
These technology giants frequently offer advice and recommendations for managing personal and business finances. It is worth mentioning that apart from their giant technology companies, American entrepreneurs have had financial and administrative skills that have allowed them to continue growing and expanding their businesses.
One powerful rule that entrepreneurs apply to take care of their money and ensure success is the 50/30/20 rule, which has been popularized by personal finance expert Elizabeth Warren and her daughter Amelia Warren Tyagi in their book ‘All Your Worth: The Ultimate Lifetime Money Plan’.
The 50/30/20 rule is a simple personal finance strategy that has been effective in managing income efficiently and intelligently. To implement the 50/30/20 method, you allocate 50% of your income to basic needs, 30% to wants and tastes, and the remaining 20% to savings and debt management.
Both Bill Gates and Mark Zuckerberg have expressed their commitment to prudent management of their personal finances and have mentioned using the 50/30/20 rule as a tool to achieve this goal.
Basic Needs (50%): Even with their vast fortunes, these entrepreneurs prioritize meeting their basic needs, which includes expenses such as housing, food, transportation, and medical care.
Wants and Tastes (30%): Millionaires also understand the importance of enjoying life and indulging in certain luxuries. This 30% goes toward discretionary spending such as entertainment, travel, restaurants, and luxury purchases.
Savings and Debt (20%): The most crucial aspect of the 50/30/20 rule is allocating 20% of income to savings and debt management, including building an emergency fund, investing for the future, and reducing existing debt.
Both Gates and Zuckerberg have shown that by following simple financial rules like the 50/30/20 rule, individuals can effectively manage their finances and work towards financial security.
By Alejandra Hernandez Torres, Digital Scope Editorial, TIME.