Use this simple formula to figure out how much money you should save and spend, says Sallie Krawcheck. (via CNBCMakeIt)
While the specific answer varies from person to person, anyone can use the "50-30-20 formula" to help them figure out how much to spend and save, says Sallie Krawcheck, co-founder and CEO of50% of your income goes to needs: "That's your rent, that's the car that you need to drive to work, that's your work wardrobe."30% of your income goes to fun
Nearly one-third of your money can be directed towards "fun," such as travel and going out to eat, says Krawcheck. "We're only on this earth a short amount of time," she adds. "We need to have fun.", how you spend is oftentimes more important than your overall income or the amount you spend in total.
Money experts suggest you spend on experiences, such as trips or classes, rather than things. "All of the best psychological research on money and happiness tell us that spending money on experiences brings more happiness than spending money on material objects," Ron Lieber, New York Times
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