How To Spend A $50,000 Income -- 50/30/20 Budget

How To Spend A $50,000 Income -- 50/30/20 Budget

How should an annual income of $50,000 be spent? It’s critical to know how much of your income should be spent on each category or you’ll never be able to get ahead. Having no idea how much you should be spending on items like housing, transportation and necessities will result in way overspending in some areas and falling behind in others. Keeping an eye on your budget is extremely easy and doing this will ensure you’re able to build wealth and make great forward strides so you can become financially independent and retire early no matter how much you earn. $50,000 is a great amount because while it might not be a huge income, it’s enough to build incredible wealth when used wisely. Take a look at how much you should be reasonably spending on each major category with an annual take-home pay of $50,000.

[mark]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[KennethV]

Lesson: Don't spend 50k on a animation where you are seduced by the Hazbin Hotel Lady

[samuelroyal]

When you invest, you're buying a day you don't have to work

[patriciacarlos]

A lot of folks have been going on about a June rally and said stocks that would be experiencing significant growth this season, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[SliceShorts]

I spent it on Loona x Octavia AMV video 😢

[Youtuber_YusukeFromGermany]

Can someone tell me how to make 10k per month after tax on the internet? I have too low income and dont know what to do

[ciscoshibler]

$2, 500 on dang... if I spend more than $200 a year on clothes I'd feel guilty😂😂

[johnnysimes]

Great video. Under Needs, i think there should be a category for "medical" which includes health insurance, co-pays, out of pocket, and drugs; that can be significant. Note that "housing" needs to include all cost including rent/mortgage, homeowners or renters insurance, gas/water/electric utilities, and property tax. It can also be dangerous to include debt repayment under the Savings category. That category is really intended for growing your future, and debt repayment is about paying for your past. Even worse, you would not want to put all your current clothing Needs on a credit card and then use the Savings debt category to pay for it.

[dustywilson]

25% for housing just doesn't exist anymore for most folks.

[BudgetsWithELMA]

Very informative video & great content 👍

[Verbalase]

Cool advice, but I think I know what I want to “invest” in

[SenecaRaine]

The transportation segment is where I struggle now. I have no car payment *currently* but am finding that I need an SUV (for space and weather). Insurance alone is now going to be about $1500/y, with gas being similar, so looking for a new vehicle with payments under $200 a month is just practically impossible.

So far I'm arguing with myself over it and applying some of the "wants" category to the ~$200 left to give myself a split need/want on the car, since realistically it's both to me at this point. I *need* transportation, but I only *want* that transportation to be nice.

[sidneyboo]

I wish in the united states there was much more reliable public transportation. It would help with budgeting so much more. knowing a bus pass will only cost 60 bucks for the month and thats all you'll need instead of getting stressed with gas prices, if someone damages your car, car repairs, car insurance, car payments, etc.

[martinwm]

Only uses about 20% on needs, wants and saving are more or less the same for me, so 70% into savings (shares and BTC). The last 10% goes in increasing my emergency funds, so it could last for more then 6-12 months of hell breaks out.

[calebgriffin]

Great Video, would love to see more videos like this using the median wages in different states.

[averagejay]

Nice Video!
Few questions - Where do utilities fit on this? Under Housing? And where would a mobile phone be categorized under? Needs or Wants?

[andrewchristianson]

Spending $100 per week to eat out is insanity... I understand it's entertainment But it's one of the easiest things to cut from a budget. And learning a skill like cooking at home is fulfilling and useful

[Azel]

I think there should be a distinction between the cost of renting vs. paying a mortgage. Spending 25% of your net income on rent is not the same as spending 25% of it on a mortgage, as the mortgage has an end-date and you are building equity as you go along.

[CmdrShepardsPie]

This budget doesn't seem to include taxes?! You have your 50/30/20 budget on $50k at $25k/$15k/$10k, with about 25% total towards housing at $12.5k or about $1k/month. However, after taxes those numbers look more like $37k after taxes, 50/30/20 $18k/$11k/$7k and $9k on housing or $780/month.

[djpuplex]

I gross a little over $50k/yr. 50/30/20 is a joke. $1666 a month for necessities that would cover rent and half of maintenance in most places. I do a more nuance %15 based budget. Save and invest 15%.