4 Reasons the 50/20/30 Budget Doesn’t Work

4 Reasons the 50/20/30 Budget Doesn’t Work

[nataliaflores]

Honestly the 50/30/20 rule has opened my eyes to this point.. 50/30/20 is 100% so if you adjust to whatever percentages that equal 100% you’ll be fine so I’m my case rn I do 60% needs 10% wants and 30% savings/debt and as time goes on I can adjust that to whatever my life looks then.

[Bluponi]

I can see the points that Rachel is making, but a lot of people don't budget at all, so the 50 / 20 /30 budget is good place to start... Its better than no budget at all, and wondering where your money went...

[texasbound]

“Giving” is in the 30%… if you WANT to “give” then take it out of the 30% ❤

[trina]

The 50/30/20 budget works perfect for me. I feel that it is no different than the Dave Ramsey zero based budget. I also felt that the Dave Ramsey zero based budget was to complicated and took up way to much of my time.

[BRExteriorPro]

The 50/30/20 budget is awesome! I use it all the time

[ah]

50 20 30 is a very reasonable beginners budget. YOU get to define your wants, and you are at least putting 20% to savings or debt payments. You want to do more? That’s a want. I sense Rachel is just knocking other ideas down to make a video….

[rileygshep]

I feel like 50/20/30 is a baseline starter for budgeting and you should adjust these percentages to suit your needs

[alessiaclark]

I remember starting my first Investment with 100k which I'd saved in the bank . It was a risk I took but there is "no gain without pain". After 3 years I made a $1m ROI. I am planning my retirement which will happen by February next year, totally debt free and I'm glad to have secured a good life for my kids. The two things I've learnt when it comes to investing:
1.Don't let anyone stop you from trying.
2. Try it no matter the outcome.

[hddub]

I understand where she is coming from however I have tried both and for ME, the 50/30/20 helps. It gives me a fixed amount to work with each month. If I know bills may be high I will switch up the percentages but my wants are always the lower percentage. For my wants I have categories and I have a budget for each. It has been working well so far and really makes me think more about where I spend my money.

[DB-fxoo]

This video is gold. Thanks for sharing!

[ninjastormy]

By definition, 'needs' are a fixed dollar amount, not a percentage. If you make more money, your 'needs' should not increase, so they should become a smaller percentage of your income.

[livingunashamed]

Amen! For me currently its 65 needs 30 savings/debt 5 wants. 30 for wants is insane!

[justinlindholm]

My understanding of the 50/30/20 rule is

Your needs should be no more then 50% of your income. Your wants should be no more then 30% of your income. You should save no less then 20% of your income, .

As for giving/tithing, that would be part of your 30% wants category, because you don't have to give/tithe your money. That something you wants to do.

The 50/30/20 budget is a rule of thumb to help people that have never budget before.

[TheManttv]

I took this 50-30-20 as a guide not my master, I also incorporate the zero based budget when I'm not depressed/anxious lol.
I prefer to take a bit of good from many sources rather than all my knowledge from one source...unless it's God knowledge !
Love you Rachel,
the world needs more women like you!

[Gundam-bruh]

Giving is a “need”, paying off debt is a “need”.. this is a great way to begin budgeting, then adjust the parameters throughout time, it can “live and breathe”, what doesn’t she understand.

[brentkillian]

Seems like after you reach baby step 4 you should have a certain percentage for saving one for giving and one for wants. Otherwise you get out of balance.

[AmanSheT]

When i first started out, a young single mother, this one worked when they were young. But now, the zero base budget works 100 %. Yet, saying that, i use a combination of zero base and a variable budget, which works much better.

[browneyes]

This is a good budget if you are starting from
zero. 50% of our income does not cover our current necessities.

[NurseMoneyGrowWealth]

10-10-30-50 works well for me along with cash stuffing, automation and focusing on the baby steps. I use every dollar to track expenses

[williamdefo]

50/20/30 budget would be a huge improvement for a lot of people. Its better than no budget.