How to Make a Stress-Free Budget: 50/30/20 Rule

If you want to learn how to save money but keep making over-complicating budgets, the 50/30/20 budget is a simple, fail-proof formula. In this video, I’ll teach you how to manage your finances by making a budget you can stick to.

Learning how to budget your money is essential to learning how to save for the future. If you’re struggling to figure out how to budget money, the 50/30/20 rule is an easy method of budgeting for beginners.

Here, you’ll find the 50/30/20 rule explained along with some tried-and-true budgeting tips for effective money management.

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50/30/20 BUDGET CALCULATOR:

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#DowJanes #PersonalFinance #Budgeting

[DowJanesFinancialEducation]

Thanks for watching!! Hope you've found some helpful tips for spending your money wisely. What struggles have you had in creating or sticking to a budget?

[nicolletteramirez]

The food analogy is perfect! Definitely the same formula works for food and money budget; making a plan 🧡

[DawnOKane]

Dow-Jane’s:
50/30/20 (after tax income goes into); 1/needs2/wants
3/savings

[birgitswitilek]

Thank you to explaining what categories are covered by Needs. I look forwards to watching more of your videos.

[rebeccaesthermichelson]

Thank you for these videos! I have two questions:
1) Do you have other amounts you suggest for an emergency savings fund? I've heard others suggest 3-6 months of living expenses - what do you think about that?
2) How do you suggest further breaking down the 20% of Savings? For example, what % would you allocate to emergency fund, Roth IRA, brokerage accounts, crypto, etc.?

[hopegray]

Really like this way of looking at a budget- and YES I definitely had too many categories and it was too much effort to keep track of it! I am excited to try this method. Thank you!

[wwillrise]

I had a failed budget when the variables were too uncertain, and everyone involved wasn't on board with it. I've since created my personal budget and plan to keep a close eye on it. Checking in monthly to adjust accordingly.

[susanrissing]

The Re Store is an awesome place to find inexpensive materials for home projects

[kinesiologygr]

I really love your videos! Thank you for making this subject understandable! How is the 20% saving different to the retirement money?

[kelsey]

Given up on budgets sooo many times 😅 thank you for

[sb-fcuj]

Yep, Ive tried lots of ways to budget. Sometimes I was making mistakes by accounting for the money twice or forgetting bits and pieces which should have been added eg card payments that I couldn't find the receipts for later. I do check in with myself once a week but I sometimes ignore it if Ive gone over because I feel it was justified 'this time' a week later I see I could have done without it. I also had no real goal as I thought Id never achieve a big goal like having a deposit for a house on my wages.

[dushka]

Well, it's easy to define percentages, but if my needs are 70%+ of my income, and I already have a full time job, I just don't see how I could lower my needs or increase my earnings... I mean, I guess I could cancel my Netflix, but that won't make any significant difference if my mortgage and maintenance cost me $2400 per month...

[olivia-in-progress]

Is this the same in dealing with finance for family? We joined all of our finances together, but not sure how to go about budgeting and investing separately when we have joint accounts. And advice on budgeting for couples will be helpful. Thank you!

[justmaribeard-goss]

It was more than I could maintain and complicated

[kiddieba]

The struggle is that I'm freelance, so my income changes every month, making it hard to budget. That and I get overwhelmed very easily. I just created a third budgeting system for myself to try after failing to find any templates that work for me. It does have a lot of categories but I'm hoping that I'll be able to keep up with something that is customized to me. Fingers crossed! I will look back over that budget to see what percentages I have where (somethings are complicated though....ex: is a blender for my morning a smoothies a need or a want?). Thanks for this video and all the videos you post!

[lindaviolet]

From this training, I may not save, I spend a lot on needs, 80% of my sal. I'll think about this

[deniseb]

When it comes to this method, I've always had some confusion as to whether this amount is per pay period or monthly income. I understand that, for some, the income is the same per paycheck but for others it may fluctuate based on hours worked. Please forgive me if this sounds like a dumb question but I'm sure someone else is wondering the same thing. Thanks in advance

[Savannah-edrv]

Only works if you aren't overbudget and can't meet basic expenses. Wants and savings would have to be a big Zero!

[susanlinn]

I have always had such a hard time with this because while I have a salaried job much of my income goes to covering out health insurance. My husband does contract type of work and it is hard to know what he will be bringing in. Any suggestions?

[juanarincon]

you said after tax income....how do we calculate that? thank you!