This is all about money management which we need to do on a periodic basis to have financial freedom.
There are many articles which say about this, but in real life I found many people managing it in their own way and getting financial freedom out of it. For ex: Simplest money management system suggested by a friend of mine as below:
50% - Necessities Expense account (Your Day to Day Expenses Account)
20% - Financial Freedom Account (FFA Account only for investments. Never spend only invested)
10% - Education Account (Invest in skill development, Personal Development)
10% - Long Term Saving for Spending Account.
5% - Fun & Joy account (balance out the investing for fun % joy(nurture yourself – fine dining, etc)
5% - Give Account (To a lot of people wealth is how much you have. But if you truly want to create wealth, you might want to change that viewpoint. Try thinking of true wealth as how much you give.
Now my question is what is the way you follow and why do you think it is best? Please share your money management way so that if it is really good and possible then others can also follow it.