Why does everyone rave about the 50/30/20 rule

I tried that 50/30/20 budget method for 6 months straight starting last January and it nearly wrecked my finances. In my area near St. Louis, 50% of take-home for needs barely covers rent and utilities, let alone food or gas. I was constantly squeezing essentials into the 50% bucket while watching my wants category sit unused. I finally switched to a zero-based budget where I assign every dollar a job, and my savings actually grew by $300 a month. Has anyone else found the 50/30/20 rule just doesn't work for real life?

2 comments

2 Comments

olivia_rivera8819d ago

Used to preach the 50/30/20 rule to everyone I knew because I read about it in some finance blog. But last year my rent jumped $200 and that 50% for needs suddenly felt like a sick joke. I tried zero based budgeting after that and it saved me about $250 a month too. You are right, that rule just does not work when your cost of living is high.

miles_sanchez19d ago

My first month trying 50/30/20 I spent 72% on needs and felt like I needed a separate category for "staring at my empty savings account." Switched to zero based after that and found $280 a month just by honestly tracking where my money went. Still not sure if I'm budgeting or just admitting I can't do math.