The 50/30/20 Rule of Budgeting | Budget Tips
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- Опубліковано 31 січ 2022
- I get a lot of people that ask for overall percentages that work for budgeting. That's where the 50/30/20 rule of budgeting comes into play.
This is a system, it is not necessarily the best system for everyone.
Hope it gives you some idea of what that could look like for your life.
Enjoy!
Car payments is not fun category😅
Exactly I was thinking 🤔 what 🤷🏾♀️
If you drive anything other than a beat up old Honda than it is in fact a luxury not a necessity 😅
That should be in the 20% umbrella for debt payments.
Debt is actually more like 50% for most people.
@chroniccowboy But the car payment is a "minimum monthly debt payment". You would be in trouble if you didn't pay for it. Saving for a luxury vehicle? That's a want
The 50-30-20 rule has been a significant part of my financial management strategies.
That's awesome! I know it doesn't work for everyone, but if it does-- it's a powerful setup!
My bills before gas and groceries is 1,200 I barley make 1,500 😁 I love being an adult
LITERALLY
cut some expenses
@@dorunafured5856can't cut rent and bills. unless you don't want air and water, sure, go ahead and cut them!
How do you barely make 1500? Try some capital deepening. Get educated on something. Only time you’d be making that little is if you had unskilled labor (cashier for example). A job that requires skilled labor will pay much more but it also requires education.
Honestly, I hear this. It's a rule of thumb, but it's certainly not THE rule.
Paying down debt should be out of your essential allocation as opposed to your savings.
Good point!
For most people any extra they pay towards debt would come at the cost of fun money of "your future". Your minimum payments would be part of essentials though!
@@TheWhitneyHansen Realistically that's not fun.....
I would flip with 50 being savings and 30 and 20 being fun and essentials
Same
If you can make that work-- you should totally do it! 💞
I am new to learning how to budget my money and just came across this. I’ve been thinking no one thought about funeral that I think should go into savings. Because you’re preparing your funeral so that it will save you or your family from stress. I don’t know how much money to costs for a funeral and getting a casket before you die.
As an adult at 24, I like to make sure everything is taken care of so there’s less stress.
That's why you factor in life insurance
I'm in the millitary so I already have the essentials coveted. If your active duty try this:
Get out of Debt & Create a $10,000 Emercancy Fund before following these steps
15% into Roth TSP
With the remaining money you have after ROTH TSP:
75%: Savings
10%: Essentials
10% Fun Money
5% Vacation Money (plane ticket for when you take leave)
Car payment is not fun that’s an essential 😂
It’s not essential to drive a car that requires monthly payments. My 2005 ford tarus is beat up but it runs and costed 1500$
@@7l083 good for you 🍪 I need a reliable car bc I commute to work and $1500 cars don’t work for me 🤷🏾♀️
Like the 75-15-10 rule
Car payment are fun because most people get an 800 dollar car payment instead of buying a reliable user car
Makes sense!
I have it slightly modified
55% Essentials
20% FUN
25% Saving
Your handwriting is good
Eating out and fun should not come before saving and investing for your future… unless I knew there was an inheritance on the way.
I would switch the 30 and 20 parts to make 30% going to Debt, Savings and Retirement an 20% for Fun Money
I think that's a very good idea!
@@TheWhitneyHansen It would make it easier to pay off debt and save for other things. I personally am more focused on paying off debt so I don't need so much money for my "wants" as long as bills and such are paid I'm good.
That's how it normally goes 💯
I would consider a car payment as an essential as I can't be without a vehicle where I live. I would say 70-20-10 would be more accurate.
What about liabilities like credit card payment loans emis... These don't come under FUN or WANTS category
I don’t think this is a one size fits all budget plan. If someone is deep in debt they shouldn’t spend 30% of their income on fun. Not to mention this budget looks way different for someone making $100,000.00 a year than it does for someone making $25,000.00 a year.
It's very true! When I was paying off debt, I had no money for fun and my essentials were ridiculously low. But it was a season. All about finding a healthy balance!
Thx
Question, what if I have a goal I want to do like buying a car or a apartment. What percentage would I use the 20% or the 50%
I think whatever you can afford, honestly! The 50-30-20 is more a guideline once you're out of debt and looking for more balance.
There shouldn’t be eating out ( otherwise its once a month) and no shopping anymore. I learned to cook delicious meal at home and i stopped shopping for clothes. Living minimalist lifestyle, use what you got. Being frugal in 2024 because the inflation is too high.
Offerings?
Car payment is not fun 🥲🥲
Right that’s bills
Get fun car and then car is fun
Tell me about it I just barely paid off my car it took 7 years and I went through hell and back with my car.
#Adulting 😔😪😒🤑💸💲💲💰💵💵💳🏦🏧💳💵💸
Instead of 30% fun, don’t have fun. Put that 30% into car to pay it faster. 80% essentials 20% savings
I have 40 , 60 rule. 40 for all the expenses 60 saved up
After taxes we take home 11,500 a month. Daycare alone is $3000 per month. Do I deduct daycare and then start my 50-30-20?
I would still include it under essentials. It's very likely that your budget will be out of the 50-30-20 during this season of your life. And that is totally okay!
bills more than 50%? Try 70. 20. 10.
Your car payment lies in the fun category because cary payments are dumb, and nobody needs them. You could be driving a paid off $4000 car instead. You might be living outside your means with your housing and utilities expenses if those are more than 50% of your pay.
@@crimsonstripes Can't live within housing means in these prices smh
@@jumpypancakes4993you literally can though, my rent is 10% of my gross and I’m a junior in my field. If you wanna live in the city centre that’s a whole other story
I rather have 60/20/20 for balance
Wow
i tried this i now have 267k ty!
You should always pay yourself first. 50 percent should be saved, 30 percent should be essentials and 20 percent can be BS
i live in illinois......
Right
😂
Doctor copays for. Emergency or when you get sick preclscriptions..
Essentials all the way! Health is always an essential in my eyes.
She's dangerous, she sees Car Payment as FUN.
Switch 30 and 20 and lll believe this. No way people need 30% every week for “fun”
What if 50% doesn’t cover all?
It doesn't for a lot of people. I'd view it more as a guideline to see how far out of proportion your budget is.
This has never worked for me
It's tough! It never worked for me when I was paying off debt since I was legit at
Making 2200 a month minimum bills food gas and x stuff (that x is so hard to calculate food, cig, only god knows what else) is all around 1800 maybe 2k a month I got no money for future or entertainment 😂 litterally scavenging xhange each weak 😢 life does infact fucking suck.
Do the exact opposite way
You forgot 10% towards charity or donations.
You would include that in your essentials if that is a value for you.
These are some excellent budgeting tips I found helpful. A little long but lots of gems throughout the video:
ua-cam.com/video/5qQ2wmz4P58/v-deo.html
your car payments should be 10% or less of your total income so uh
Gotta be lower than that then or take it out of you "fun" money.
This is backwards
Car payments are essential what is blud talking about😭
Nah. I haven’t had a car payment since 2008.
Sell the car and get a ebike but if you live live in the middle of nowhere or in North America get a used car that you can buy in full and drive it until it dies by then you have saved enough money to buy a slightly used car
Taxes????
After tax pay.
Don’t follow this