Unpopular opinion: The 50/30/20 rule is way too loose for most people

I tried the 50/30/20 budget for 6 months last year and ended up broke every month before payday. My rent alone in Austin is $1200, which is already 40% of my take home. So I switched to a zero-based budget where every dollar has a job, even if it's just $5 going to coffee. It took 3 months to really get the hang of it but now I actually save $200 a month instead of hoping I have leftovers. The 50/30/20 works if your rent is cheap but for most of us in expensive cities it's just wishful thinking. Has anyone else had better luck with a different method?

3 comments

3 Comments

owens.cameron23d ago

My grocery bill hit $400 last month and I still ate pasta half the time.

xena123d ago

Oh honey, my budget's a hot mess too but at least I can afford ramen.

perry.evan23d ago

Zero based is the way. Moved to NYC last year and my rent is 45% of my income. Tried 50/30/20 for one month and laughed. Now every dollar is assigned before the month starts. Being an accountant helps me see where people mess up though - they don't track the small $5 and $10 stuff that adds up to $200 by the end of the month. Once you nail that, the method works.