A guide to distribute your salary and achieve your goals

Managing your salary can sometimes seem like a challenge, but there’s an undeniable satisfaction when we create a plan based on our income and it allows us to achieve goals.

The Platea x Popular team is committed to providing you with tools that make a difference in your wallet and your financial well-being. Review and shape your plan with these practical tips.

One of the simplest approaches to distribute your salary is the 50/20/30 rule. This formula divides your income into three general buckets so you can cover your basic needs, save for the future, and enjoy the present without overspending.

• 50% towards needs: Half of your salary is intended to cover essential needs such as rent, electricity, water, health, transportation, and groceries.

• 20% towards savings and debt payments: Whether you’re creating an emergency fund, saving for a long-term dream, a future project, or investing, you can set aside this percentage at the beginning of each month.

• 30% towards wants: This bucket includes cool things like Thursday outings, Prime Day shopping, and coffee with a friend. It’s important to keep in mind that this percentage is flexible but controlled.

The key is to identify your goals and understand that each situation is different. For example, some people who use this three-category system allocate their budget using different percentages such as 80/10/10.

Maybe for you, right now, 50% in fixed expenses is higher in your formula due to personal commitments. Or maybe you prefer to save more for long-term goals and therefore increase the recommended 20% to 30%. The important thing is to adapt the formula according to your actual needs.

Creating a budget is just the first step, but what’s most important is sticking to it. Here are 3 tips on how to do it:

1. Break down the budget by week: Instead of looking at your finances only at a monthly level, divide your expenses by week. For example, if you allocate $100 a month for miscellaneous expenses, this translates to $25 per week. At the end of each week, review your expenses and adjust if necessary.
2. Review your categories regularly: Expenses can change, and it’s important that your budget be flexible. If you notice that your miscellaneous expenses are exceeding your limit (which can happen to all of us from time to time) consider temporarily adjusting other areas.
3. Your savings go first: It’s easy to spend money and then save whatever is left, but a more effective approach may be to set aside your savings before covering any other expenses. This is to make sure you meet your savings goals.

You can count on tools designed to focus on the financial goals you’ve been contemplating for a while, in a simple and efficient manner:

• U-Save¹: An account that allows you to automatically transfer (from another account you have with Popular) the money you want to save. You can schedule this transfer on your payday or whenever you want. The goal is to set aside a fixed amount of money without the need for reminders or having to make manual balance transfers (wink!).

• Ahorro Directo (Direct Savings)²: With this option you can grow your savings while you shop. Every time you pay with your Popular debit card, the payment is rounded up to the next dollar and the difference goes directly to the savings account you select.

• Mi Banco Alerts³: Stay on top of your expenses with real-time notifications about your balances, payments, transfers, and purchases made with your Popular debit or credit card. If you want to monitor your budget closely to avoid surprises, this tool is perfect for you.

Managing your income and achieving your financial goals is a process that can take time and require adjustments, but you don’t have to do it alone. Explore all the resources featured on the Future Me page to help you take control of your finances, one dollar at a time.