Why does nobody talk about the 50/30/20 rule being backwards for most people

I used to push that 50% needs, 30% wants, 20% savings breakdown hard. Then I ran my actual numbers from last September in Charlotte and realized my rent alone ate up 42% of my take-home pay. For anyone in a high-cost city, 50% for all needs is a joke. I shifted to a 60/20/20 model with wants cut way down and started actually saving money. Has anyone else ditched the standard percentages for something that fits your real life?

3 comments

3 Comments

rosepark14d ago

Hernandez.gavin beat me to it but yeah, that 50/30/20 thing falls apart fast when your rent is half your paycheck. I like your 60/20/20 idea but one thing - you might be shortchanging your wants a little too much. I tried cutting mine to basically zero for six months and burned out hard, ended up ordering takeout twice a week just to feel normal. Maybe try a 55/25/20 if you can wiggle it, gives you a little breathing room without wrecking your savings.

davidshah14d ago

Man I tried the 50/30/20 thing once and my rent laughed at me. I live near Seattle and my "needs" category looked like a hostage note - 50% for housing, 25% for food, 15% for utilities, and the other 10% was just me begging. Switched to a rough 70/10/20 split where wants basically mean I buy a coffee once a week and call it a luxury. My savings account finally has a pulse but my social life is basically a monthly group chat. Your mileage may vary but that standard rule feels like it was written by someone renting a shed in 1985.

hernandez.gavin14d ago

Dude @davidshah's comment is spot on, my rent in Austin is basically a second mortgage and I had to start eating beans just to keep my savings from flatlining.