Switched to a 50/30/20 budget method back in January and it finally clicked

I used to just track spending after the fact and wonder where my money went. After reading a simple breakdown from a personal finance blog, I shifted to allocating 50% for needs, 30% for wants, and 20% for savings before payday even hits. Over six months, I managed to put $1,200 into my emergency fund without feeling deprived. Has anyone else tried percentage based budgeting and seen a clear difference?

2 comments

2 Comments

christopher38522d ago

Forget saving, just earn more money so budgeting is totally pointless.

phoenixh7421d ago

Have you actually tried living off a lower salary for a few years though? I was in your exact spot making good money and thinking budgeting was a waste of time. But then I got hit with a surprise medical bill and realized I had no emergency fund because I just let my income cover everything without tracking anything. Budgeting isn't about being cheap, its about making sure your money goes where you actually want it to go. Once I started tracking my spending, I found I was wasting hundreds on stuff I didn't care about, like subscription services and takeout. You can earn a ton and still feel broke if you don't have a plan for where it all goes.