How to Make A Budget | 50/30/20 Budget Explained

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How to Make A Budget | 50/30/20 Budget Explained.

Budgets are the worst aren't they? They're always telling us that we don't have enough money to do what we really want to do? What if there was a budget that actually focused on spending money on what we want to spend money on?

Well my friends, today I have some good news for you, because there is a budget that exists to do that! It is known as the 50/30/20 budget or the balanced money formula. Today I'm going to be showing you how it works!

If you enjoyed this video you can check out some of my other videos at the links below!

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Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"
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[the_real_swiper]

64% = Investing
28% = monthly costs + rent
8% = spending and food and fun

[kerryhager]

Read this book years ago and fell in love with this simple budget. Perfect for a person like me who delpores the detail of budgeting, this is very simple to stick by.

[askepticalcharmander]

Everyone I know lives on a 60 20 20 budget. They spend 60% of their income on ridiculous rent and car payments, 20% on weed and alcohol and 20% on leisure and stupid stuff. And then get mad at me because I have enough in savings working the same hours and same wage as them to take a month off work and still cover my bills and still have leisure money and they think I've entered a cheat code or something.

[wisdominvestor]

Nice explanation of where money goes for a budget.

[Vallavender]

I had to watch this video 4 times. It's so mellow I kept losing focus

[quigon]

That is great video. Can you go over the Dave Ramsey zero based budget next?

[ML-pdso]

So helpful to educate. I hear so many theories but seeing them backed up with math is so refreshing and is helping me decide which one to use!

[drunclecookie]

interesting... not quite the system I was intending to use but just did the math because I'm kinda curious... Mine's 53/33/14

[SeanBaker]

Clearly everyone is different, but having a monthly clothing budget seems odd to me. What could you be doing to your clothes that you need to buy some each month? Is it just that you like buying clothes rather than need them? If kids are involved, I could see the need.

[HeidiWruck]

I'm really loving your channel thank you for the information!
Only one critique though; the background music level and music choice not that great. I struggle to hear your words over the music and your message gets lost in the "midifile" choice. Cheers

[joeldiaz]

50 30 20 rule seems to only work if you are in a low cost area. Not for folks like me that live around NYC, ; where many 1 bdrms are approaching 2K a month.

[Carl_Jr]

Quick question. Going back to the first Californian, if he/she "wants" to live in a really nice area wouldn't that allow that person to combine part of the "want" to cover part of the "necessities"? There would obviously be less money to cover other "wants", but sometimes those sacrifices have to be made.

[aracelisison]

The 50% can't cover both my food and bill expenses. After removing 20% + bills + after all others, I can't possibly survive with a 40php a meal😨

[awesome]

Best budget is everything is free and 100% stays in my pocket

[Loathomar]

The issue with the 50/30/20 Budget idea is that location is not taken into account. Let say you want to save $10K a year for retirement, should you do this is SF, one of the most costly place on earth to live or in Mississippi? Well if your income is $100K in SF and $30K in Mississippi these are rather different questions. Your cost of living in Mississippi might include $400 rent and your needs at 50% of your 30K budget is reasonable, while in SF you can get a small apartment for $3, 500 a month, meaning just your rent is 42% of your budget. Clearly the $30K job in Mississippi is the better choice because your can get to the 50/30/20 where as in SF you are left with 60/30/10. But no, 10% of 100K is still more then 20% of 30K. And the "wants" you can get with 30% of 100K in SF are a LOT better then the wants you can get with 30K in Mississippi,

[vivasjimmy]

is it possible to mute the brackground music??? i can not stand it....

[Ultrabenbooyah]

My budget? 50% taxes, 30% rent, 20% food and transportation

[richardsanchez]

Call me crazy but why 30 to your wants and only 20 towards finances? Shouldn't it be the other way around? Spend what's left after saving not vice versa.

[jeffreyfuhz]

How can anyone not separate needs from wants?

[bgandjsco]

Going forward you will not be getting 8% in the market .Maybe 4 0r 5%