The 50/20/30 rule of envelope budgeting

Here're some retirement tips for a better retirement future, the 50/20/30 rule of envelope budgeting can help with your retirement planning.

Many in Hong Kong spend all their hard-earned wages at the beginning of the month, leaving little for savings. Coupled with the ease of obtaining a loan, overspending is reaching critical levels!  Findings from the AIA MPF Retirement Quotient Survey² reveals that 86% of respondents prefer immediate enjoyment over planning for the future. If you want to change your spending habits, try the “50/20/30 rule of Envelope Budgeting” today!

Imagine dividing your monthly income into designated envelopes and paying your expenses from these envelopes during the month. The “50/20/30 rule” involves dividing your monthly income into three parts: 50% for daily essentials (meals, commuting, rent); 20% for retirement savings or investments; and the remaining 30% for other expenses. This rule is easy to implement, provides a good balance between expenses and savings, and goes a long way to helping you build your nest egg!