55000 family income..70 20 10 principle

Answer:The 70-20-10 principle is a budgeting method that allocates your income into three main categories. Here’s how you can apply it to a family income of 55,000:### Income Breakdown1. **70% for Needs:** - **Amount:** 38,500 - **Usage:** Essential expenses such as housing, utilities, groceries, transportation, and healthcare.2. **20% for Savings:** - **Amount:** 11,000 - **Usage:** Emergency fund, retirement accounts, and other savings goals.3. **10% for Wants:** - **Amount:** 5,500 - **Usage:** Discretionary spending like entertainment, dining out, hobbies, and vacations.### Summary- **Needs:** 38,500- **Savings:** 11,000- **Wants:** 5,500This method helps ensure that your family's basic needs are met while also promoting savings and allowing for discretionary spending.

Answered by cedrixkeng | 2024-10-25