Note: the 50/30/20 budgeting doesn’t work very well if you goal is to make a big purchase ( house, car, etc ) if you aren’t making enough income. It is good for middle class people. anyone lower it just isn’t enough savings.
@@Zack_Westeri dont think saving is a waste of money. itll probably help you in the future tbh. you dont have to put LOADS of money in savings, but at LEAST put some on a minimum.
See since I don’t have any bills yet I put 70% of my income towards savings and the rest towards an account for buying. It’s been working for me so far.
Quick note if you live with your parents and you don't pay for food or rent then increase the savings percent up to 60 percent of your allowance or salary beleve me it'll help u alot once you stop living with them of if you started a project or if you neede funding for something in the future
1) 50 towards needs 2) 20 towards a high yields savings account or an index fund 3) 20 towards investments 4) 10 towards wants I think this is the best Note: This is from most important(1) to least important(4)
It depends. You only have one life so make sure those "savings" are spent at some point. You only have so many good young years... it depends what is better for happiness in the long run. You never know when you'll day. Savings of a million wont help me if a terrible accident happens... Now am not saying savings are bad, but maybe we should enjoy life more
What I did is have the cost of my bills/expected grocery expenses in my checking plus $200-$300 for unexpected purchases (eating out, other shopping, activities, etc.). The rest of my paycheck goes to my savings. If I know that I need to make a bigger purchase than $200-300 then I'll adjust my spending amount accordingly. This is when I was living with my mom so this might not work for everyone but it has saved me thousands.
My whole life was pretty much 90% for needs and like 8% for savings and 2% for wants. The fact someone spends that much of their income on eating out and things they just want etc kinda scares me
@@paperclip6290 A "low" percentage doesn't mean they spend little on needs, it means that their average income is higher than average, or something is decreasing the cost of their needs.
@@Dylanj8795they just said 90% are needs. NEEDS. You cant afford wants like dates at that economy lol. If we get payed higher then sure, we can take a vacation.
Growing up, I had a money log that my mom made for me. It went like this: 70% savings, 20% spending, 10% tithe. I wasn’t a huge fan of it when I was little… But when I got my driver’s license, it was worth it cause I had enough money to buy a car! Thats thousands $$$$ I saved as a kid!
Ngl, I’ve been doing the 50/40/10 rule. 50% savings w/emergency fund, 40% Needs like food, bills, gas, etc. 10% Anything my heart desires, including if I want to save up for a big trip, don’t take it from savings take it from this category
@@gladiatorgamer9502 that’s valid, it is my own personal choice since I’ve found it’s easier to not splurge by if I’m not restricted. If 50/50 works, great!
As someone who went to a community college for 2 years, used to be broke, then worked a full time job for 5 years, going back to school to take a few classes, then onto university. I'll definitely have money to work with. College is expensive, and being broke one time is why I decided to take a break from it.
This video didn't necessarily teach me anything, but instead gave me reassurance that my plan to save 50% of my income for needs 25% for savings and 25% for bills and taxes.
Yeah no,saitama was alr a super human/"fictional character" syndrome,eating bananas only gets you some potassium sure,magnesium sure,where's the calcium,protein,omega 3 fatty acids etc...,you wouldnt have the energy to do 50 push ups with just bananas.
For me I do 70/20/10 70% expenditure 20% emergency 10% saving or investment(never lose this money, only to grow it) This is from the book “The Richest Man In Babylon”
This is the kind of general education you should be taught by your parents and/or school. Unfortunately, my parents never taught me on how to spend my money carefully, nor did the school had any plans on preparing students for life. 😥 Both parents and school taught me to function "get it together and go to work, even when you're sick" 🤦♂
I have finished a semester in College and the second one will soon come to an end and the thing is that I haven't bought a single textbook but downloaded PDFs for free for every book from online.
As a low income i have not really a choice, the "wants" have always been out of the equation, but, as an introvert, i consider eating with friends a need.
Recommendation: Create an emergency fund first when it comes to saving. $500 is a good starting point, but your fund should eventually be equal to 3 to 6 months worth of living expenses. This emergency fund should also be separate from your main savings account.
If 50/20/30 is too great for people try this one. 35% towards housing 15% for transportation 25% for life 10% for savings 15% debt. It’s expanded so it gives you a greater, more accurate, view of where your money is going. Break these into more sub categories for greater clarity.
The method my family had used for generations is what we call the needs first split. Need are first then what ever we have left we put half of into savings and are left with money for wants.
Me who lives on 75$ a week. Since i dont have any expenses. I just save the rest of my money and invest some too. Im starting to pass the median curve for dividends. So now my dividends get put into a 5% APY checking account that compounds monthly. Imma retire before im 30 (im 19 btw) i worked and slaved away through high school to get where i am. No daddys money or any hammy downs. If you arent investing, start now. The market is booming.
I found that the 50/30/20 rule doesn't apply to my salary anymore. I still spend the same way I did in college, when I was making about half as much. My lifestyle hasn't really inflated, so my percentages look more like 40/30/30, but I'm contributing so much more to savings.
So what I did was what a lot people did NOT approve of and the crazy thing is, is that I have a family now and we do it still lol. We eat MRE's. "but they're expensive?!" yes they are BUT. They come with a lot of food and balanced nutrition per MRE. 1 MRE in the morning would last me all the way to dinner. It kept me healthy. 1 MRE is about $10 and some change and people spend on average $35 on eating out so rationing just 2 out per day would still save you and anything you dont eat you can eat later which goes into more savings. We were able to cut out our fridge altogether and replace it with a compact mini freezer. saves on space and the lightbill. It worked for me. you dont have to like it. Its about survival. Not luxary.
The true rule in my experience is 1. Pay all the the things that are necessary using ‘bad’ math (taking worst case scenario) 2. Use what you have left and split it three ways between investing, saving, and spending on wants
“And.. eating out. It was stressful” -Gohar Ohio edition Reason: in Ohio eating is stressful every time you go out to eat for example McDonald’s there ice cream machine is working. (Red flags) The Oreo Mc flurry has cockroaches instead of Oreo. They also have the among us chicken nuggest along with the plushie in the happy meal.
College, books, laptops and all supplies are free in my country. And when I was in middle school - high school I worked my ass off all summer. I don't have to worry in college.
In my opinion 50/30/20 is not that good you should probably use 50/20/30. 30% for saving and 20% for wants. This can be more effective than you can think
This rule works for college students, hopefully no one tries this when they're making more money and are saving for big purchases like a home. Also that want percentage doesn't necessarily have to be on clothes or tech etc, it can be invested if you know how (which I do not do take my comment with a grain of salt)
Learn to cook and be comfortable eating the same things a lot. That's the BEST way to save money from the "needs" category. Buying things you can get in bulk like rice and beans helps a lot. Rice and beans is a super filling combo, nutritional, and combined give you a full protein strand. Then you might be able to afford other things you'd like to indulge in for a meal now and then, too.
I do a daily budget Rp3.000($0,2)(except sunday and red calendar). My target is to collect money like I pretend having money after work. My meals were paid by my parents.
In Argentina we have the 95/5/0 rule! 95 percent towards needs, 5 percent towards saving in case the government need to steal from us to make a football stadium, and 0 towards wants
This literally happened to me today, my friend wanted to go get some tacos at a taco truck with me but he’s grounded from his phone so he couldn’t use Apple Pay and I only had $1.10, we just were hungry though we didn’t do this lol 😂
Bro, you can't just move to a new country... You have to have a really good reason to immigrate there, and most of the time, wanting to take advantage of that country's services isn't considered a good enough reason.
Check out Experian's blog post about the 50/30/20 rule! www.experian.com/blogs/ask-experian/what-is-the-50-30-20-rule/
What’s the best way to write a summary?
Second
Im not gonna share my freinds can work it out 😂
I go "Dave Ramsey," and make that 20% $500 to 3 months. (That's what he recommends.)
Jesus loves you may God bless
50/30/20 sucks once you start making more. Breaking up needs and reducing wants and increasing savings is a must either way.
I dont get pocket money so I would just go for 50% for savings
Besides if you're in a country where healthcare fees exist (🇺🇸) those "20%" could be worth nothing
@@AccurateEnd143 yes it works fine in countries like Brazil for example
@@luiseduardo8806 does it work in Argentina? Since our inflation is over the ceiling more than ever because the presidency printed more money
@@nope851 you talk big game for they guy with the homophobic username
"Your friend wants to go out to eat, but you're tight on cash. Here's what you do" Make the friend pay for the food
69th like🤠
251 likes and no comments? Ima fix that
@@heartsformansanah there was actually a comment lol
Yeah make them pay
Can you pay for the food but I give you a $20 gift card to a grocery store?
Note: the 50/30/20 budgeting doesn’t work very well if you goal is to make a big purchase ( house, car, etc ) if you aren’t making enough income. It is good for middle class people. anyone lower it just isn’t enough savings.
the 50% is needs which could include a house or apartment
@@callie.11510 it includes rent for current apartment and transportation but not the saving up for a down payment/full payment on a house or car.
@@mushroomhehe370 I was including rent and things like that with the house or apartment, as well as bills if it’s a house
Given the average American doesn't have $400 in the bank it's better than the rob peter to pay lifestyle most lead
@@callie.11510gonna need more than 50% to pay for a house or car
possibly the cleanest sponsored video
Ya lol
Oh my god.I wouldn't've realized If you hadn't told me.Such an Idiot that explains all.
I didnt even notice it was a sponsor even after the video ended until I checked the comments
I didn’t even notice it was a sponsor lmao
sadly its not trustworthy since its a sponsor
If you don't wanna repeat the video:
50%- NEEDS
30%- WANTS
20%-SAVINGS
@piztah when i get into college im doing 50% needs 25% savings 15% wants and then 10% tithes for church
@@regular_human500 going to say this in Colledge and the first year of work.
dont put anything into saving thats just wasting your money.
@@Zack_Westeri dont think saving is a waste of money. itll probably help you in the future tbh. you dont have to put LOADS of money in savings, but at LEAST put some on a minimum.
SHould have seen earlier
@@NFrealStanMe putting 60% of it into savings (after rent)
See since I don’t have any bills yet I put 70% of my income towards savings and the rest towards an account for buying. It’s been working for me so far.
50 20 30 rule: Exists
Rent: Half a paycheck
Bills: The other half
"Put 100% of your income towards needs, 0% towards wants and 0% towards savings."
😂😂😂😂
Such pessimism man cheer up we'll get through this.
ok but the food looks banging tho
Fr 🤤
🗼✈️✈️💥💥🗼
A burger and 5 wet chips?
@@matthewkeenan3003 yes
@@ixkyu fair
Quick note if you live with your parents and you don't pay for food or rent then increase the savings percent up to 60 percent of your allowance or salary beleve me it'll help u alot once you stop living with them of if you started a project or if you neede funding for something in the future
Smart addition!
this. i didn't use a cent of my income when i was a minor living at home so when i was 18 i could just bolt and still stay off the streets and eat.
1) 50 towards needs
2) 20 towards a high yields savings account or an index fund
3) 20 towards investments
4) 10 towards wants
I think this is the best
Note: This is from most important(1) to least important(4)
It depends. You only have one life so make sure those "savings" are spent at some point. You only have so many good young years... it depends what is better for happiness in the long run. You never know when you'll day. Savings of a million wont help me if a terrible accident happens...
Now am not saying savings are bad, but maybe we should enjoy life more
This is one of my favorite of your videos! Thank you, I am trying to get into the best college in my state! Wish me luck!
I will!
Good luck man
Please update when you get to know did you get in
Cheers mate, wishing you the very best
❤Best of luck to you.
What I did is have the cost of my bills/expected grocery expenses in my checking plus $200-$300 for unexpected purchases (eating out, other shopping, activities, etc.). The rest of my paycheck goes to my savings. If I know that I need to make a bigger purchase than $200-300 then I'll adjust my spending amount accordingly. This is when I was living with my mom so this might not work for everyone but it has saved me thousands.
My whole life was pretty much 90% for needs and like 8% for savings and 2% for wants. The fact someone spends that much of their income on eating out and things they just want etc kinda scares me
It always baffles me that some people spend so little on needs, 85% of my paychecks goes to basic needs and I live alone
@@paperclip6290 A "low" percentage doesn't mean they spend little on needs, it means that their average income is higher than average, or something is decreasing the cost of their needs.
Have you ever heard of going on vacations or maybe getting a new car or going on dates with your partner?😂
@@Dylanj8795they just said 90% are needs. NEEDS. You cant afford wants like dates at that economy lol. If we get payed higher then sure, we can take a vacation.
@@Dylanj8795ah yes, get a car when you need 90% of income to even survive and have a house
Growing up, I had a money log that my mom made for me. It went like this: 70% savings, 20% spending, 10% tithe. I wasn’t a huge fan of it when I was little… But when I got my driver’s license, it was worth it cause I had enough money to buy a car! Thats thousands $$$$ I saved as a kid!
UK savings strategy: 0% wants, 0% savings, 110% needs
fax tho
Ngl, I’ve been doing the 50/40/10 rule.
50% savings w/emergency fund,
40% Needs like food, bills, gas, etc.
10% Anything my heart desires, including if I want to save up for a big trip, don’t take it from savings take it from this category
For me I just do 50/50,never like the idea of putting 10% for my wants
@@gladiatorgamer9502 that’s valid, it is my own personal choice since I’ve found it’s easier to not splurge by if I’m not restricted. If 50/50 works, great!
@@gladiatorgamer9502so you never do anything for fun? Never go out to eat, watch a movie, watch Netflix, or anything like that?
@@nachoboi_ it may not be possible
You do not know how much this helped me thank you
As someone who went to a community college for 2 years, used to be broke, then worked a full time job for 5 years, going back to school to take a few classes, then onto university. I'll definitely have money to work with.
College is expensive, and being broke one time is why I decided to take a break from it.
This video didn't necessarily teach me anything, but instead gave me reassurance that my plan to save 50% of my income for needs 25% for savings and 25% for bills and taxes.
1. Eat banana every day
2. No aircon and fans
3. 100 push ups
4. 100 squats
5. 100 sit ups
6. 10 kilometers run
Every singe day
Yeah no,saitama was alr a super human/"fictional character" syndrome,eating bananas only gets you some potassium sure,magnesium sure,where's the calcium,protein,omega 3 fatty acids etc...,you wouldnt have the energy to do 50 push ups with just bananas.
@@abuzaynab9363ok
UA-cam glitched and now this is a nutshell animations video on loop. I love my crappy internet.
For me I do 70/20/10
70% expenditure
20% emergency
10% saving or investment(never lose this money, only to grow it)
This is from the book “The Richest Man In Babylon”
I NEED to save
I WANT to save
I SAVE my money
This 50/30/20 technique works!
Thanks Gohar!
Posted just when I needed it lol
This is the kind of general education you should be taught by your parents and/or school.
Unfortunately, my parents never taught me on how to spend my money carefully, nor did the school had any plans on preparing students for life. 😥
Both parents and school taught me to function "get it together and go to work, even when you're sick" 🤦♂
That is the most sneakiest advertisement.
I’m so glad I took a personal finance class in school
When I first got a job and didn't have to pay for any bills or anything, I did 50% to savings immediately
I have finished a semester in College and the second one will soon come to an end and the thing is that I haven't bought a single textbook but downloaded PDFs for free for every book from online.
As a New Yorker, I can definitely use this.
That is, if you have enough money to put just 50% into savings or maybe you have too much money and have more left over.
One I pad or a e note…. Useful for all subs throughout your college completion to take notes
I would say 40% needs 45% savings 15% wants depending on your budget
As a low income i have not really a choice, the "wants" have always been out of the equation, but, as an introvert, i consider eating with friends a need.
If you rent a place, it becomes 100% needs
One of the most beautiful episodes ever ❤️❤️
Recommendation: Create an emergency fund first when it comes to saving. $500 is a good starting point, but your fund should eventually be equal to 3 to 6 months worth of living expenses. This emergency fund should also be separate from your main savings account.
I came up with my own 25/25/25/25 rule that I use to define financial stability
When you start earning more I personally switch this to a 30/30/40 rule, same categories: needs, wants, and savings.
If 50/20/30 is too great for people try this one.
35% towards housing
15% for transportation
25% for life
10% for savings
15% debt.
It’s expanded so it gives you a greater, more accurate, view of where your money is going. Break these into more sub categories for greater clarity.
The method my family had used for generations is what we call the needs first split. Need are first then what ever we have left we put half of into savings and are left with money for wants.
After doing calculations, turns out I won't even be old enough to get a job once I get to college, I'm ✨SCREWED✨
Did you get to college at age 13? How can you not be old enough for a job by college age? I cant think of any coumtry that does that
Me who lives on 75$ a week. Since i dont have any expenses. I just save the rest of my money and invest some too. Im starting to pass the median curve for dividends. So now my dividends get put into a 5% APY checking account that compounds monthly. Imma retire before im 30 (im 19 btw) i worked and slaved away through high school to get where i am. No daddys money or any hammy downs. If you arent investing, start now. The market is booming.
I found that the 50/30/20 rule doesn't apply to my salary anymore. I still spend the same way I did in college, when I was making about half as much. My lifestyle hasn't really inflated, so my percentages look more like 40/30/30, but I'm contributing so much more to savings.
Dollar tree will save on collage supplies
20% on an ETF or any long term investments is a better option. And you have compound interest too.
I'm 13 and I babysit I spend 20© on whatever I want and the other 80% I put in a savings account so I can save up for a car.
Oh my...thanks! I'm just going to college this year! This is indeed helpful.
Also as your income increases, don’t prioritise increasing the budget for wants. Focus on savings and invest it
Who's here replaying this part? 😂 Absolute gold!
When you are young you should try your best to reach 50% of your income as savings. Needs are one thing, but wants can be avoided
So what I did was what a lot people did NOT approve of and the crazy thing is, is that I have a family now and we do it still lol.
We eat MRE's. "but they're expensive?!" yes they are BUT. They come with a lot of food and balanced nutrition per MRE. 1 MRE in the morning would last me all the way to dinner. It kept me healthy. 1 MRE is about $10 and some change and people spend on average $35 on eating out so rationing just 2 out per day would still save you and anything you dont eat you can eat later which goes into more savings. We were able to cut out our fridge altogether and replace it with a compact mini freezer. saves on space and the lightbill.
It worked for me. you dont have to like it. Its about survival. Not luxary.
This idea is good but i have some different that's called also 50/30/20
50 for saving 30 for needs 20 for food
Holy shit I just realized I understood 50/30/20 wrong! I thought you spend 20 on needs and wants, invest 30 and save 50.
Who the hell has that kind of money
The true rule in my experience is
1. Pay all the the things that are necessary using ‘bad’ math (taking worst case scenario)
2. Use what you have left and split it three ways between investing, saving, and spending on wants
Budget: 90% rent/utilities, 10% one thing per month whike all get further and further behind.
I loved college years...
“And.. eating out. It was stressful”
-Gohar Ohio edition
Reason: in Ohio eating is stressful every time you go out to eat for example McDonald’s there ice cream machine is working. (Red flags) The Oreo Mc flurry has cockroaches instead of Oreo. They also have the among us chicken nuggest along with the plushie in the happy meal.
This dude is legit my saviour for my finance unit
does it work tho
@@kkagieMostly, yeah
College, books, laptops and all supplies are free in my country. And when I was in middle school - high school I worked my ass off all summer. I don't have to worry in college.
Save 70% spend 30 always works with me
Love your vids 👍
In my opinion 50/30/20 is not that good you should probably use 50/20/30. 30% for saving and 20% for wants. This can be more effective than you can think
Clean ad, Gohar
This rule works for college students, hopefully no one tries this when they're making more money and are saving for big purchases like a home. Also that want percentage doesn't necessarily have to be on clothes or tech etc, it can be invested if you know how (which I do not do take my comment with a grain of salt)
Or maybe not be miserable and buy stuff you want to reward itself for working hard
Learn to cook and be comfortable eating the same things a lot. That's the BEST way to save money from the "needs" category. Buying things you can get in bulk like rice and beans helps a lot. Rice and beans is a super filling combo, nutritional, and combined give you a full protein strand. Then you might be able to afford other things you'd like to indulge in for a meal now and then, too.
Do a "would you study" for pharmacology
You can also do shaqs rule of halting the money 3-4 times and using what’s left for wants
30% needs, 65% saving, 5% fun money
Save and invest as much as you can by starting young.
You dontvneed all the things youd like to have. Thecless clutter, the better.
80% goes to needs because of inflation while salary remains the same
Thanks, this was really useful!
Bro there was an exact video like this with 40% necessities 30% wants and 30% save
I do a daily budget Rp3.000($0,2)(except sunday and red calendar). My target is to collect money like I pretend having money after work. My meals were paid by my parents.
Before I go to college, I can get more knowledge (from you!)
In Argentina we have the 95/5/0 rule! 95 percent towards needs, 5 percent towards saving in case the government need to steal from us to make a football stadium, and 0 towards wants
Now this can be real unlike saving 80% of your income like other short creaters
Im definitely saving this fot later in my life
This literally happened to me today, my friend wanted to go get some tacos at a taco truck with me but he’s grounded from his phone so he couldn’t use Apple Pay and I only had $1.10, we just were hungry though we didn’t do this lol 😂
Man back in my day eating out was expensive, especially straight to dorm services.
I've thought about this and I will follow it but doing 50 25 25 dropping needs by wants by 5 to increase savings
Dropping wants by 5*
Is nobody gonna say something about this being a smooth sponsor
Thank for the advice
50/50 rule for me, 50 savings, 50 needs my wants do not matter i can get those when i have a successful career
I love your tips
"savings are useless, investment is better."
- Jeff bazus.
40% Savings 40% Needs 20% Fun
What's that.... a calculator
Rich people do it this way:
50% needs 50% investments + 30% from income by investments (wants)
Ive always been doing 50/50. This is the first time ive ever heard of 50/30/20
This plan can be changed to your liking, I personally like the 40 30 30
The ham with pasta is criminal😂
Wish I was told this before hand. I’m 3/4th of the way done with college
The 40/20/40 is probably better
Give save spend is a better strategy
nowadays it's more like:
70% needs
20% wants
10% savngs
I learnt this trick in business class while I was in yr 9
he still didn’t say what to do when you’re eating our w/ ur friend and tight on cash😢😢
Move to a country where education of any level is completely free and where they don't force you to buy anything but instead give it to you
Ireland
being born in America is better than being born in the regressive theocracy my dad grew up in but a social democracy would've been nice.
Bro, you can't just move to a new country... You have to have a really good reason to immigrate there, and most of the time, wanting to take advantage of that country's services isn't considered a good enough reason.
You should make just a really long video giving tips for school
For needs if you make enough that % can be lowered some.