- What is the 50/30/20 Budgeting Method?
- Rules for the 50/30/20 Budgeting Method
- Who is this budgeting strategy best for?
- Who is this budgeting strategy not for?
- How to get started with the 50/30/20 budgeting method
- Pros and cons of the 50/30/20 budgeting method
- The bottom line
What is the 50/30/20 Budgeting Method?
Rules for the 50/30/20 Budgeting Method
50% needs or living expenses
- Utilities (including your cell phone)
- Student loans
- Personal loans
- Credit cards
- Additional debt payments
30% wants or non-essential expenses
- Streaming services
- Subscription boxes
- Gym memberships
- Restaurant meals (including takeout)
- Paid apps
- Non-essential clothing
- Home decor
- Emergency fund
- Traditional savings account
- High-yield savings account
- Retirement savings (401ks, IRAs, CDs, retirement investment accounts)
- Money market accounts
50/30/20 budgeting example
|Budget Criteria||Estimated Monthly Budget||Actual Monthly Expenses|
|Needs||$2,000||Rent - $950, Utilities - $250, Insurance - $100, Groceries - $300, Cell Phone - $50, Gas - $100, Minimum debt payments - $250|
|Wants||$1,200||Streaming Services - $50, Restaurants - $200, Takeout - $250, Subscriptions and memberships - $100, Misc shopping - $400, Events/entertainment - $200|
|Savings||$800||Emergency fund - $400, Retirement plans - $200, Investments - $200|
Who is this budgeting strategy best for?
College students and professionals new to the workforce
Anyone new to budgeting
Anyone struggling to build savings
Who is this budgeting strategy not for?
Anyone struggling to make ends meet
Those with large savings goals
Anyone looking for in-depth budgeting insights
How to get started with the 50/30/20 budgeting method
Pros and cons of the 50/30/20 budgeting method
Set it and forget it mentality
Offers reflection on what’s really essential
Little focus on debt repayment
It’s not a forever plan
The bottom line
Reclaim Up to $610/Year in Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But, who has the time to look around for around a new company?
A website called CarInsurance.net makes it super easy to see if you’re getting the lowest price. All you have to do is enter your ZIP code and your age, and it’ll show you your options.
Using CarInsurance.net, people have saved up to $610 a year.
It takes just a few minutes to see how much CarInsurance.net could put back in your pocket. And the best part? Because we’re driving less, some insurers are slashing prices this month.