What Is the 50-20-30 Budget Rule? Is It a Sure Way to Be Money Smart?

Seeking Advice Forum
1

Wassup everyone,

I’ve come across the 50-20-30 budget rule and I’m curious to understand more about it. From what I gather, it involves allocating 50% of your income to needs, 20% to savings and debt repayment, and 30% to wants.

Can anyone explain how this rule works in practice? Does it really help with managing finances effectively? I’d love to hear your experiences or any tips on implementing this budgeting method. TYIA :blush:

2

I think the 50/20/30 budgeting rule was a great idea. But in recent years, it has become untenable for the average American. More so for people living in big cities where rent takes almost 30% of my income.
Now the problem really isn’t that, you have to factor in that I am supposed to put 20 % on savings and debt repayment which does not factor in the car lease and student debt can pretty much eat up all the savings