Hot take: The 50/30/20 budget rule doesn't work for anyone living in a big city

Tbh I spent 2 years trying to force my paycheck into that neat little box. Rent alone takes up 45% of my income here in Austin, and that's before utilities. The "wants" category basically doesn't exist when your necessities eat everything. Has anyone else just given up on those generic budget formulas and started tracking by what's leftover after survival costs?

3 comments

3 Comments

lee8475d ago

Man, @the_alice hit the nail on the head with that 70/20/10 breakdown. That "panic savings" part is way too real - it's not about planning for fun, it's about bracing for the next thing to go wrong. I gave up on the 50/30/20 thing years ago and just started calling it "what I need to breathe" versus "everything else.

the_alice7d ago

$45 Uber ride last week just to get across town for a doctor's appointment that was "in network" but apparently their parking lot is in a different zip code. My 50/30/20 spreadsheet is sitting there looking at me like I'm supposed to save 20% when my "needs" category is just me holding my breath hoping my car doesn't break down this month. Honestly my budget is more like 70/20/10 if 10 is panic savings and 20 is hoping my landlord forgets I exist.

avery2197d ago

I mean yeah the Uber thing stings but calling that a "panic savings" situation feels a little dramatic, you can just pack a sandwich for lunch a few times and make it back.