The 50/30/20 rule actually worked for me once I looked at the numbers

I always thought budgeting rules were too rigid until I read that the typical American spends 35% of their income on housing alone. That stat from the Bureau of Labor Statistics really hit me because I was closer to 40%. It convinced me to try the 50/30/20 method strictly for 3 months, and I finally got my housing cost down to 28% by moving to a smaller apartment a mile away. Has anyone else had a specific number change how they budget?

3 comments

3 Comments

anthony_jenkins6111d ago

Moved a mile away just so my housing costs wouldn't make me cry every month.

kai_brown2310d ago

That stat doesn't convince me the 50/30/20 rule is the answer though. Moving a mile away might save on rent but it could cost you more in other ways like commuting or time. @anthony_jenkins61 knows what I mean about crying over costs but sometimes those extra few percent are worth it for a place you actually want to live in. The real trick is finding a system that fits your specific situation instead of forcing a one-size-fits-all number on yourself. Why not just track your spending for a month and see where your money actually goes before committing to a rule?

quinn_king1610d ago

Moving a mile made a big difference for me too because my rent dropped by almost 15 percent and my commute barely changed. Tracking everything for a month showed me exactly where my money was bleeding out - turns out delivery food was the real problem, not my apartment. Sometimes a small move or one change in spending habits gets you way closer to a budget that actually sticks.