Effective financial strategies vary depending on which stage of life a person is in. For example, a recent college graduate working his or her first professional job will not have the same financial strategy as someone on the cusp of retirement. But one financial strategy that people of all ages can look to for guidance is the 50-30-20 approach.
· 50 percent of money is spent on needs, including housing costs, health insurance, car payments, and groceries
· 30 percent of money is spent on wants, including hobbies, dining out and travel
· 20 percent of money is allocated to savings