Unpopular opinion: The 50/30/20 budget rule is actually too strict for most people

I was reading this article on The Balance last week and it said that only about 1 in 3 Americans actually follow the 50/30/20 rule exactly as written. That surprised me because everyone online acts like it's the holy grail of budgeting. On one hand, the rule gives you a simple framework (50% needs, 30% wants, 20% savings) that keeps you from overcomplicating things. On the other hand, if you live in a high-cost city or have irregular income, those percentages just don't fit your reality. What's your take, does the 50/30/20 rule actually work for you or do you use something looser?

2 comments

2 Comments

nancy9292d ago

Wait only 1 in 3 people actually do that?

andrew_wood722d ago

Honestly though, the 50/30/20 rule isn't too strict, most people just aren't honest about what's a need vs a want. If you count takeout, streaming subscriptions, and a newer car as "needs," then yeah, it's gonna feel tight. But if you actually look at your spending line by line, you'd probably find a few hundred bucks you could move into savings without even feeling it. Have you ever done a deep dive on your own numbers to see where the leak is?