The 50/30/20 Rule of Budgeting | Budget Tips

I get a lot of people that ask for overall percentages that work for budgeting. That's where the 50/30/20 rule of budgeting comes into play.

This is a system, it is not necessarily the best system for everyone.

Hope it gives you some idea of what that could look like for your life.

Enjoy!

[Meek]

I have it slightly modified
55% Essentials
20% FUN
25% Saving

[TommyMcIntyre-rpiv]

The 50-30-20 rule has been a significant part of my financial management strategies.

[HinaNaru]

My bills before gas and groceries is 1, 200 I barley make 1, 500 😁 I love being an adult

[shiranfernando]

Paying down debt should be out of your essential allocation as opposed to your savings.

[hamnakhan]

I would flip with 50 being savings and 30 and 20 being fun and essentials

[luciathefemininewoman]

I am new to learning how to budget my money and just came across this. I’ve been thinking no one thought about funeral that I think should go into savings. Because you’re preparing your funeral so that it will save you or your family from stress. I don’t know how much money to costs for a funeral and getting a casket before you die.

As an adult at 24, I like to make sure everything is taken care of so there’s less stress.

[MCPlatinum-MCP]

I'm in the millitary so I already have the essentials coveted. If your active duty try this:

Get out of Debt & Create a $10, 000 Emercancy Fund before following these steps

15% into Roth TSP

With the remaining money you have after ROTH TSP:

75%: Savings
10%: Essentials
10% Fun Money
5% Vacation Money (plane ticket for when you take leave)

[Kera]

Car payment is not fun that’s an essential 😂

[arlettezambrano]

I would switch the 30 and 20 parts to make 30% going to Debt, Savings and Retirement an 20% for Fun Money

[maeb.]

There shouldn’t be eating out ( otherwise its once a month) and no shopping anymore. I learned to cook delicious meal at home and i stopped shopping for clothes. Living minimalist lifestyle, use what you got. Being frugal in 2024 because the inflation is too high.

[ImAyBeast]

Car payment are fun because most people get an 800 dollar car payment instead of buying a reliable user car

[lisaarchibald]

I don’t think this is a one size fits all budget plan. If someone is deep in debt they shouldn’t spend 30% of their income on fun. Not to mention this budget looks way different for someone making $100, 000.00 a year than it does for someone making $25, 000.00 a year.

[vascularlab]

Eating out and fun should not come before saving and investing for your future… unless I knew there was an inheritance on the way.

[ritsfinance]

What about liabilities like credit card payment loans emis... These don't come under FUN or WANTS category

[drteeka]

I have 40, 60 rule. 40 for all the expenses 60 saved up

[mightquinnable]

Question, what if I have a goal I want to do like buying a car or a apartment. What percentage would I use the 20% or the 50%

[crystalwilson]

After taxes we take home 11, 500 a month. Daycare alone is $3000 per month. Do I deduct daycare and then start my 50-30-20?

[irzncol]

She's dangerous, she sees Car Payment as FUN.

[kylep]

You should always pay yourself first. 50 percent should be saved, 30 percent should be essentials and 20 percent can be BS

[traceybiles]

Doctor copays for. Emergency or when you get sick preclscriptions..