40 30 20 rule | BTCC Knowledge

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The 50/30/20 and 40/30/20/10 rules are budgeting methods to manage finances. The 50/30/20 rule allocates 50% of income to needs, 30% to wants, and 20% to savings/debt. The 40/30/20/10 rule adds a 10% allocation for long-term savings or investments, reducing spending on needs and wants. Both aim to help individuals manage their money more effectively.

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