Arturo Elías Ayub, a well-known businessman and son-in-law of Carlos Slim, suggests following the 50-30-20 rule to improve financial health and have a clear control over expenses. According to Ayub, 50% of monthly income should be allocated to basic needs such as rent, food, transportation, essential services, and debts. The 30% could be allocated to wants like outings, clothing, vacations, and entertainment, while the remaining 20% is for savings and investment.
Ayub advises that once the budget is established to know income and expenses, one can determine how much to save each month. For example, if the income is 15,000 pesos and fixed expenses are 10,000, the remaining 10% can be saved. By following this method, one would have 1,500 pesos to save, leaving 3,500 for expenses.
The businessman emphasizes the importance of saving a percentage of monthly income to have peace of mind in case of emergencies or to approach financial goals. The 50-30-20 rule is a useful tool for effective personal finance management.
To create a budget according to Elías Ayub, he recommends dividing a sheet into income and expenses to have clarity over finances. It is crucial to know how much one earns and how much is spent, to accurately determine how much can be saved each month.
The 20% allocated to savings and investment is key to ensuring financial future. This percentage can be used to pay additional debts, invest in digital platforms, or simply save. Ayub emphasizes the importance of not overspending and staying within this range to prevent unnecessary expenses from affecting the budget.
