Rule

1. Rule

2. 50 percent of our net income should be spent on "needs." • Image retrieved from: http://markpowers-and-company.com/images/Water%20Faucet.jpg

3. I earn $30,000/year. Using the 50-30-20 rule, how much of my income should be spent on "needs?"

4. 30 percent of our net income should be used on “wants." • Image retrieved from: http://www.behavioradvisor.com/Donations.html

5. I earn $30,000/year. Using the 50-30-20 rule, how much of my income should be spent on "wants?"

6. 20 percent of our net income should be spent on savings and debt reduction. • Image retrieved from: http://www.mygulfbank.com/PersonalBanking/Savings.aspx

7. I earn $30,000/year. Using the 50-30-20 rule, how much of my income should be spent on savings and debt reduction?

8. Image retrieved from: http://www.crocktock.com/ten-best-advice-on-how-much-rent-can-i-afford/

9. Gross income: total revenue received before any deductions or allowances, taxes, etc. • Image retrieved from: http://www.crocktock.com/ten-best-advice-on-how-much-rent-can-i-afford/

10. Net income: For an individual, net income is gross income minus taxes, allowances, and deductions. An individual's grossincome is used to determine how much income tax is owed. • Image retrieved from: http://www.crocktock.com/ten-best-advice-on-how-much-rent-can-i-afford/