Part 4/7:

The 50/30/20 rule is flexible and can be adjusted based on your career progression and income level. As earnings increase, you might choose to allocate more toward investments (perhaps increasing the 30% to 40%) and reducing savings or expenses accordingly. High earners often have a larger portion set aside for investments to accelerate wealth accumulation, though it’s important to always prioritize needs and savings.

Going Beyond the Basics: Insurance and Financial Protection

Financial planning doesn’t stop at budgeting. A vital next step is to ensure comprehensive insurance coverage, which acts as a safeguard against major health issues, accidents, and unforeseen events.