Pro tip: The 50/30/20 rule actually works if you track the 50 first

I always ignored that rule because my 'needs' felt way over 50% of my take home pay. But last month I actually sat down and wrote out every fixed cost like rent, insurance, and minimum loan payments and it only came to $1,380 out of my $3,100 check. Anyone else realize they were lumping in wants with needs when they did this?

4 comments

4 Comments

the_elliot1mo ago

Man, it is wild how easy it is to blur that line. I caught myself doing the same thing a while back. Turns out my "needs" included eating out three times a week and that premium streaming bundle I barely touch. It's like we get so used to certain spending that we just call it a need to avoid feeling guilty. Once you actually draw that hard line, it really changes how you see your money.

the_linda1mo ago

My buddy Dave called Netflix his "gas bill" for six months straight.

angela5871mo ago

That "gas bill" thing is pretty funny but honestly it's not a great comparison. Gas is something you literally need to get to work or run errands, Netflix is just fun. I get the point he was making about justifying things but it kind of muddies the water... you start calling everything a need and then you don't know what's actually important anymore. At least he caught himself doing it though, that's more than most people do.

paul_taylor211mo ago

Used to call everything a necessity. You're right, that totally changed my thinking.