Pro tip: The 50/30/20 rule actually works if you track the 50 first

I always ignored that rule because my 'needs' felt way over 50% of my take home pay. But last month I actually sat down and wrote out every fixed cost like rent, insurance, and minimum loan payments and it only came to $1,380 out of my $3,100 check. Anyone else realize they were lumping in wants with needs when they did this?

3 comments

3 Comments

the_elliot6d ago

Man, it is wild how easy it is to blur that line. I caught myself doing the same thing a while back. Turns out my "needs" included eating out three times a week and that premium streaming bundle I barely touch. It's like we get so used to certain spending that we just call it a need to avoid feeling guilty. Once you actually draw that hard line, it really changes how you see your money.

the_linda6d ago

My buddy Dave called Netflix his "gas bill" for six months straight.

paul_taylor216d ago

Used to call everything a necessity. You're right, that totally changed my thinking.