Therapy should be in the necessity budget. Don't treat mental health like a luxury. If you had cancer, you wouldn't view chemo as a "special treat", it's needed.
It’s just deplorable that in our country healthcare is indeed a luxury. Many folks can’t afford chemo even if they need it to survive a cancer diagnosis. But, that’s the reality.
I feel like with low wages and high rent, 50% on necessities can sound like a complete joke. I prefer applying the 50/30/20 rule to what's left of my wage after rent, because if I counted in rent, it would be more like 70/20/10
Consider making it 70/20/10 then. Or even 70/0/30 until you can get to a place where you can apply 50/30/20. The more you (first save and then) invest, the more you benefit from compound interest. It all depends on your goals though. Good luck! Edit: I'm assuming you've already considered ways to reduce your rent by splitting it with a flatmate and/or finding a cheaper place. Attacking your highest expense helps the most.
@@YashArya01 if you have an entry level job or even just earn minimum wage, it is literally impossible to reduce your necessities to 50% of your salary, even with roommates etc. Especially if you need a car to get to work. The 50/30/20 budget screama priviledge to me. Most people can't spend 30% of their salary on fun.
@@Schokoladentoertchen That's why I said consider 70/0/30. :) I disagree with "The 50/30/20 budget screama priviledge to me". This is not a good attitude to have. If you say that to people who give you good financial advice, you'll eventually be surrounded by people who give you bad financial advice. It's understandable if for whatever reasons you aren't there today. Aim towards it. If doing financially well is important to you, identify what skills you can build to land a high paying job while continuing to invest long term. I can tell you the 50/30/20 split isn't even the most aggressive one. If you see what people do in the FIRE community, you'll find that many even go up to 25/25/50.
@@YashArya01 No fast food/retail worker is going to "land a high paying job" unless they can someone magically afford tuition or are taking out student loans. There are only so many hours in a week that you can work standing on your feet all day. There are only so many ways you can "slash expenses" when you make $10 but the average rent is $1200/month. The average people in the FIRE community are NOT LOW PAYED WORKERS! Let's be realistic here.
I agree with that. Mental health care is health care and healthcare is a necessity you have to pay for. As an example: I have a family member who's type 1 diabetic and one with purely autoimmune hypothyroidism. They can't very well not get their meds. Same goes for mental health stuff. If you need it to function properly, it's a necessity. And honestly, it would be really helpful if checkup were a thing so people wouldn't need as much of the extensive (and possible complex) mental health care. why are we still viewing mental and physical health as different? They belong in the same category, both are (or can be) necessary for a healthy body :D
I wish there were videos for people who have very limited incomes like disability, retirement, or a low-paying job with no benefits. The "just make more money" option isn't always available.
If I had to guess, I'd say that there might not be because generally speaking, at least for people on long term disability benefits, there really is a very bad system in place to get them pay. In my opinion we don't fund those types of benefits programs enough where I live, and they absolutely fund them even less in other places, which is really awful. (I promise I vote for parties that try to get more money for those programs.)
This video (and specifically, the idea of covering essentials with 50% of your pay) is so wildly out of touch with most people's reality, but at least this comment section is validating
It's just a guideline not a rule. The idea is for individuals (who aren't used to budgeting) to think about wants/needs/investing differently. It's mostly for people who make decent money but can't seperate wants with needs. I.e. Individuals who end up buying a more expensive house and cars and think thats a necessitty.
As someone who volunteers on a crisis hotline, I can attest that many of the callers could benefit greatly from having a dedicated therapist but cannot afford it. I don't know many people who are shelling out their money to a counselor/therapist for the "fun" of it. I don't think it's fair to categorize therapy or gym memberships as luxury items unless you're picking the most expensive option for either just because you feel like it.
If you start counting only purely superfluous goods/services that are fun in the 30% discretionary spending category, then I think the percentages need to be adjusted. 30% is a lot to spend on stuff you would be fine without
@@ZePopTart this is true. A lot of the “wants” mentioned in the video are needs for many people. 30% to truly just blow on wants means you’re doing pretty well for yourself. Which in turn would mean that 30% would be quite a bit of money. Maybe if charitable donations are included in “wants” since it doesn’t qualify as a personal need or savings..
I know, I was like if you can categorize therapy as leisure you need to fucking step out of the queue like yesterday cuz in corona times ain't no therapists got time for that.
I get the sentiments of your statement... I think it is understood this doesn't apply to people in poverty. People in poverty aren't usually in poverty because they don't budget well.
Well, unfortunately, it’s that or you cut expenses by moving. Some places unfortunately aren’t structured for the lowest earners in their population to live there. We should push for social change and look out for ourselves at the same time.
This is such an important point. One 'devil's advocate' note I would pose to you. In a culture where wellness has been long associated with the rich and those with ample free time (think excessive travel, yoga retreats, weird expensive wellness practices only the richest indulge in) is including therapy as a necessity realistic for most Americans? I agree with you that it should be, but would counter that many people lack the resources to adequately address their mental health in a way we would expect them to go to the doctor for a more critical or obviously debilitating health problem.
@@Michaelolivermussi and to that end, I would add expensive medical treatments. There are way too many GoFundMe’s because nobody can afford that ridiculous hospital bill.
The thing that gets to me about this video though is that therapy is put in "leisure spending". I don't know about anyone else, but back when I was severely mentally ill, therapy was not something I would categorize as "leisure".
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Usually love this channel but this one is a little problematic most people including myself that I know are lucky if 75% of your paycheck can cover for necessary expenses. To say just get a better job or find a cheaper apartment is really saying some thing from appointed privilege
Laughs in I live in Washington where rent itself can be almost 50% of ones income (I’m lucky mine isn’t). Also, I love this page but we should start talking about the ableism and toxicity (think hustle culture) that comes with pushing side hustles. The problem is in so many places, rents are rising and wages are stagnant so you could easily find yourself paying the bulk of your 50% solely on rent. I like this idea, but for many, especially those with lower wages (even working 2 jobs), it’s not always possible to work exactly in these numbers and a second or 3rd job isn’t always feasible.
Thank you for saying that. I really hate the promotion of side hustles. I work full-time and I spend the rest of my time doing house chores, grocery shopping, necessary life admin and maintaining a social life. I live alone and there's no one else to do these things for me. How is a normal life even possible with a side hustle?
@@notthesonofwilliam788 it’s not and it’s a part of a whole systemic problem. No one should be working themselves to death. I was sick for years before my diagnosis, and a huge reason it was missed by me is because I thought my exhaustion was from working so many hours (it didn’t help of course). I just wish there was a better way, better pay and stuff. Having to hustle just to meet your basic needs is wild. Now, I agree if you want to make a big purchase or something maybe a year working a second gig to save cash fine. But overall, I want people to have quality of life and working 2+ jobs isn’t it
5 grand a month! What!? Dude I have a masters and still can't make that much! Most I've gotten is 3 grand and I felt pretty rich 😆 It's totally common where I live that couples barley make that much
I think it was just an easy number for people to get the math on. But I feel ya 🥲 that’s my income, my husbands income and most of my second job income. And we’re in the SF Bay Area…
I just think there could be an extra 4 seconds of including "whatever you need for your health to remain stable" or an example between the dozens of other examples in there. I say this in the spirit of taking guilt out of the money-talk equation, and taking into account that more oft than not society singles out people with mental health issues as bad apples instead of recognizing that needing help with it is as valid as getting chemotherapy for cancer. I believe both those things have been topics in this channel for some time now and it should be disclaimed whenever mental health is mentioned.
@@soylalilalilalula Agreed. Chelsea talks about the importance of therapy all the time and taking care of mental health. So that's what's even weirder about this.
Therapy (or spending in some way on mental health) and gym memberships (or spending in some way on physical health) should be in the necessity category.
100%!! Not everyone can or will run outside for miles a day. Some people need a gym for the community, the focus, the machines, the motivation. And therapy is a necessity that is priced as if it is a luxury. Sad reality of living in America. But these are definitely not “wants”. No one wants to need therapy or a gym membership. Everyone would love to be super mentally and physically healthy without any effort.
The “focus” of a gym is a necessity? Really? Humans were much fitter as hunter-gatherers (or are in the case of modern day tribes). It’s crazy that people think it’s a need to sit in a room as use machines that simulate movement that humans should be doing naturally, or could be doing if you just went outside for once.
@@samb2459 but we’re not hunter gatherers anymore. So what is your point? You don’t need to include it as a necessity, but other people can if it is for them. Why rant about a lifestyle that literally ceased to exist in most of the world 1000s of years ago? Most people are very sedentary, intentionally working out is necessary for some (truly most) people.
After using the 50/30/20 rule for a while, I've adapted it to be: 40% rent, 15% bills and debt, 15% food and health (incl. takeaways and gym), 20% savings and the last 10% is everything else (which usually gets taken up by gifts)... Adapt percentages and categories to your own needs, is my best recommendation
Talking about investments, forex trading is the most profitable venture I ever invested in, I reached my goal of $120k monthly trade earnings. Wondering if viewers here are familiar with Bella trading strategy?
Forex trading controls the huge part of my passive income flow, I invest big and profits even bigger courtesy of my broker Mrs Bella, her trading strategies are awesome.
Very interesting, except for the very U.S. perspective on mental health costs. Mental health expenses are medical expenses and should fall under the necessary category. After all let's not forget that for A LOT of people, therapy for mental health is a necessity. The idea that this is a personal expense versus a very real, necessary, and MEDICAL cost is actually very hurtful. The U.S. healthcare system needs to know that this is a high cost burden that should never fall on an individual, and should never have to be qualified by intensity in order to justify the cost. Just because you arnt in desperate need of inpatient care does not mean your mental health is not important. Certain therapies such as DBT or intensive outpatient are NOT covered by insurance, nor is treatment if you arn't actively suicidal or having thoughts of harm towards yourself/others. This is ridiculous, counter-intuitive, and actually keeps health care costs higher for everyone in the system, not just the individual. I am not a fan of how this video normalizes medical costs as "personal" expenses.
Necessities and luxuries are also highly subjective. For some, these subscriptions are important as it helps them physically (exercise, doing work, etc) or mentally.
No, no, no. Therapy is not a "fun" spend. Do not put it in the same category as shopping and overpriced coffee. TFD, I love you guys and I know these are other people's essays, but please reconsider posting things that don't align with your values.
Currently having to use the 70/10/20 rule. I live in a city in which cost of living has sky rocketed (Austin) but salaries have not yet increased to compensate for this.
This is very insightful! I love that it is percentage based so it fits all kinds of regions with different costs of living and median income (as you mentioned) but also it fits economies of scale! I.e., someone could start implementing this with their first job to develop a really healthy relationship with money, Then later in life as their salary increases, you would be really thankful for those values you developed when you were younger. 10/10 for me!
I actually aim to save at least 50% of my post tax salary currently! I’m lucky not to have to pay rent right now so it works out for the time being 😇❤️ this is a great video though and this channel is so underrated 👏🏻👏🏻
This is a rule that I've learned as well, and I like it, but some constructive critiques for the video: 1. As many people have said, mental health should not be a luxury. If you're going not because of mental illness, but just to "learn more about yourself" or whatever, maybe, but if you need it to function, no. Talking about therapy as a luxury because you personally don't need it would be like saying not to go to a doctor for an annual checkup because going to a plastic surgeon for a nose job is a luxury. 2. The median income for an individual American is in the 30,000s so perhaps giving the example salary in terms of a more realistic income like that would have been nice. Or at least showing what it would look like for several different income levels. 3. Including a disclaimer acknowledging that not everyone is privileged enough to budget like this and emphasizing that you shouldn't feel guilty for that would have been validating for a lot of people.
FYI median US household income is 67,000. And yes, this is mostly for people who make decent amount but still live paycheck to paycheck because they overspend on what they think is needs but is acctually a want (i.e. streaming services and cable are not needs but some folks can't understand that)
Ok so I feel like this breakdown works for some scenarios like say you only have your self to spend on and earn somewhat more than average in your area (e.g 60k in a mid size US city). The better way to budgets is figure out what your retirement goal is and how much time you have. Save as much as you possibly can after necessary expenses. The leisure expense will depend on how much you can afford to not put in savings or investments. Obviously it’s not a good breakdown if you earn 120k for yourself, or if you earn for a family of 4 at 50k
It’s kind of unfortunate that TFD has left a lot of its viewers in the dust. The 50/30/20 rule is something that a person with a good paying job in a reasonably priced city/town can follow. But most people are nowhere near this. Most of the viewers of this channel seem to be nowhere near this level of financial stability. I know it’s not TFD’s fault that they are all making more and struggling less now, and that’s great. But things haven’t changed for the better for most. Most people debate which bills to pay on time, which to pay partially, which to avoid at all, how much to pay on a credit card Bill, and what to go without on a monthly (if not daily) basis. I’m lucky if my bills do not take up 80-90% of my income. And I do not have the physical or mental energy to take on a second job. That’s just life. I think this video is well intentioned, but is doing more harm than good. It’s a test that that’s too hard to pass for so many. If it was a class, we’d all think the teacher was being unfair and dishonest. This video just missed the mark.
I've been using the 50/30/20 rule for a little while now. My income is inconsistent based on the time of year (I have hourly pay, not a salary). I make significantly more in the winter/spring than I do the rest of the year but in the summer, I don't make enough to pay for my necessities. Instead of using my current monthly income, I look at the prior year's income, divide it by 12, and that is my monthly budget. During the winter/spring, whatever extra I save outside of what I've budgeted, gets carried over into the lean summer months. Because I make more each year than the previous year, there's always extra savings at the end of the year that I can either put away in a savings account, use for Holiday gifts, splurge on something for myself without guilt, or a bit of all of the above.
Hahahahahaha! If only 50% of my income covered my mortgage and bills! I have a fairly reasonable mortgage, no car, I work from home and have very few outgoings other than mortgage and bills. No “side-hussles” possible with a serious mental illness and a disabled husband to look after. I suppose we could move into a shed…
Lol, 50% of my salary doesn't cover my necessities. Who...who lives in that world? What job do they do? How much are they paid? Where do they live? How many kids do they have?
It could probably apply to any single person without kids, with a stable work and without a car, witch is not a necessity in most european cities. I think it's fair to say that not everything can apply to anyone and you should not take one view as an ofense if it doesn't work for you
Ok,so?!... You can t make every video about everyone. Take the advice that you can get and leave the video. It s that simple :) It s not all about you people:)) Not all of us live under the poverty line and really,there are not that many people who live under the poverty line in the west. Just because you can t party like the rich,doesn t mean you are poor :)
Honestly, I love these videos but this strategy seems a bit antiquated considering modern costs. Even making a good salary where you walk away with $4,000 after taxes (genuinely that would be incredible), you still could be exceeding $2,000 easily in mandatory expenses (especially if you are taking care of someone else or a child).
Therapy is not a “nice to have” it is a necessity. For those who don’t know, therapy sessions are covered under your regular health insurance (including Medicaid). Generally your regular copay. If you’re very low income, you may be able to get it for free, but you’ll have to call and ask. Going to therapy has been one of the best investments I’ve made in myself.
Unless I want to live with 3 or more extra people my rent and bills( not including groceries etc.) That will be over half my income. I don't do much extra spending anymore and that hasn't made much difference. Good video otherwise I live in the foothills in northern California for reference.
Goodness, I have never had a pinned comment before. Or this many likes. Thank you 😊 I really appreciate it. I was reading some other comments and thought I would mention YNAB. it is a budgeting system (and app if you *want* it, but it IS NOT NEEDED) and it has helped me take control of my finances 💜💜 It took me about 3 years. Don't rush and enjoy the process.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
I get it but kind of silly. If you could follow this guideline than youre practically at a point where you dont even need to budget if you have self control..
30% is rent and utilities. Spotify and mental health are not part of the same group, not even if your therapist requires music as a therapy. My physical therapist assigned knitting for coordination and dexterity, but I assure you, my insurance will not pay for yarn, knitting needles, stitch markers, patterns, and so on. Although medically necessary, the remain as leisure expenses, even when my projects become my socks, hats, sweaters and such which are clothing. Handknit dishclothes do not count as household necessities, although they are always used with dishsoap. After rent and utilities are paid, the next expense is a fishing license, and bait. In season, hunting licenses, ammunition and gasoline count as groceries, because without them, there would be too little food. If, at the end of the month I have fifty cents remaining, it goes in the savings jar, and whoever needs it can take it. Often items like spare vehicle parts are left as collateral until the money is returned. There is no such thing as discretionary spending around here, because no one is interested in going to the store or driving another mile. It's prohibitively expensive to live in this country, and the only ones who spend money are tourists. We're always thrilled to see them go at the end of the season.
If you have an employer-provided retirement plan where you put in 50% and the employer puts in 50%, should you count the money you put in as part of the 20% you save? (It's deducted from my paycheck, so I never "see" that money in my net salary.)
@@marie-andreec5164 Yea, I just mean that if you're doing 5-10% pre-tax (including employer match) and counting that as a portion of the savings, it probably won't have a huge effect on how much you get post tax. But it depends on how much you make and your tax bracket. For me personally, I would just find an amount I was comfortable saving pre-tax from my paycheck and then apply the rule to my final post tax paycheck to maximize my savings. Because when I withdraw from the tax advantaged account many years from now, it would be taxed at that point.
I'm currently putting 90% of my money into my student loans, but once those are gone, I'll see if I can actually implement this kind of budget split. Given the state of wages and rent in my country though, I'm pretty sure the necessities category is going to be more than 50%.
Very helpful and encouraging. I was shocked to discover I'm saving more than my 20%. I just need to rein in some leisure spending and I'll be straight.
I'm a consultant and my income varies greatly from month to month. I address this by getting clear on my fixed budget items, setting a leisure spending budget based on my historical spending on categories like shopping and dining out and then investing whatever is left over at the end of the month. I also take 10% of any income received and immediately put it into savings.
Love this concept, but I'm a little confused on whether or not these percentages are calculated on your net or gross income. I'm contributing to my 401k based on my gross income but I'm using my net income to pay my rent. Should I use my net or gross income to calculate my specific 50/30/20 numbers?
I have a bit of a beef with the 50/30/20 rule. I personally feel 30% should be savings and 20% should be for fun, especially for younger folks. Another problem I feel it runs into is not enough of an emphasis on investing in growing equities as well as securities like bonds to ensure your savings can beat inflation. Good basic idea, but I think it should be tweaked a little.
I have a 65/20/15 rule. 65% savings, 20% fixed expenses (rent, bills) and 15% food and other necessities expenses. Money for leisure comes from any unplanned income that I manage to earn. I do not live in the US.
In addition to everything others have mentioned about the lack of realism, can we talk about how I have no idea how to set up an Excel spreadsheet like that? I have to use something like Mint because I'm useless with Excel.
This could be good advice, but it's delivered in the most clueless and out of touch way possible. I'm just so shocked that TFD would tell people therapy is "leisure spending," especially after all we've been through with the pandemic and its associated job losses and financial hardships. And the lifestyle presented here is out of reach for a huge number of people. "Get a side hustle," "negotiate a better salary," and "don't let people make you feel bad about $5 lattes" are not going to help the millions of people struggling to meet their basic needs.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Will people shut up about the ‘therapy is a luxury’ comment? Like christ we get that you feel that way, obviously these are permeable boundaries (is there NO ONE for whom therapy is discretionary?) but the problem ISN’T a random YT video offhandedly SAYING it’s a ‘luxury,’ it’s that the world is cruel and being poor is difficult. None of that is undone by obnoxious piling-on moralizing about therapy
Soooo, does anyone know of a channel like TFD for people who are struggling, or not making above-average salaries in big cities? I feel like this content is just unrelatable to a lot of people. I'm only able to apply a similar method, for example, because I still qualify for dirt-cheap student housing in my country. If I had to pay the market rate, I'd be paying at least three to four times as much just to exist in my city.
The constant referring to therapy as leisure spending was a little obnoxious and stigmatizing. Presumably if someone had a recurring medical expense, you wouldn’t think twice about calling that a necessity. Therapy is not a luxury or an indulgence; for a lot of people, it’s part of taking care of basic needs. The last thing someone struggling with a budget needs to here is how their therapy is optional.
Whenever I see these, I wonder why health insurance isn't listed. Health insurance has been our highest monthly cost for years. Yes, more than our mortgage. My son's budget looks like 1. Health insurance 2. Daycare 3. Rent. Where do these budgets come from?
Nice video, but what I definitely DON'T AGREE with is that therapy is not a necessity. For people who need it it's super important to go there and see it as important as doctors appointment. I still regret that I didn't went to therapy earlier.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
should try aldi for grocery, only cost me around 90 bucks per month. Assuming you cook all the foods from basic ingredient and not buying processed item and only going for maintaining body weight diet and not try to maximize muscle mass gain.Their food selection is a bit limited as a trade off. compare to other grocery chain. But you can achieve 800 cal per dollar efficiency even if you pick protein item, carb item you can achieve around 7000 cal per dollar. 1 dollar per day food cost per person is possible if you make everything from scratch and time the sales period correctly. technically 0 dollar per day is also possible, but at that point you're trading your time for food, which mean it's better to just earning more money instead. But it's a fun exercise to attempt to go 0 dollar per day in food cost while maintaining weight for a couple months. takes some creative thinking and problem solving skill.
Sorry I couldn’t finish watching this video, this budget tip is for those who have very decent income. Telling people to simple make more money is just ridiculous, you think no one thought of that??.
I feel like everyone needs a car but not everyone needs a new car. Like if you have a working older car but want to upgrade to a Tesla that would not be a necessity. Now if your car broke down/is totaled and you need to replace it then that would be a necessity. and your budget (like emergency savings or whatever) determines the kind of car you can buy.
Necessity: What you need to do to function in life. Think rent, utilities, food, basic transportation. Not necessity: Investing in an upgrade if it's not for a financial reason. Ex: If you're upgrading your ride from the metro to driving your own car just because you like not having that extra walk and it looks cool, you're not doing it for financial reasons. Whereas upgrading your metro to an occasional uber/taxi to get where you need to go without all the auto fees IS a financial choice.
Okay so let's say I would like to do this budgeting technique bi-weekly. Should I take my net pay and put away 10% in savings, 15% for leisure and use the rest for necessities. And then i would repeat 2 weeks later?
I don't think it matters how you divide it up just that the totals equal to 50/30/20. I get paid every two weeks also and I calculated everything for the month in total.
You would need to put 20% to savings, 30% for leisure from *every* paycheck. This ensures that of all the money you earn over the year, 20% went to savings, 30% to leisure. Hope this helps!
it's a guideline vs a rule and for people that are really bad with their money. There are lots of people who make good money but still live paycheck to paycheck, complain about not making enough and are a layoff away from bunkrupcy. Those people won't go from spending everything they earn to monk life and hence this still allows them to enjoy life but still save and sepearte needs from wants
I don't really agree with this method. The thought that you should let yourself have room for leisure spending is very good, the problem is thinking in ratios. While it is adjustable (so you might move a bigger ratio to savings if your income increases), it is easy to fall into lifestyle inflation with this. I think. So I prefer to first map out my expenses then set monthly limits and try not to overspend. Naturally I would have a leisure spending category too but these would not scale automatically, and you save more easier with income increase.
Grocery 300$ in US, wow here in Qatar i spend 850-900$ and its normal budget grocery with two small kids and 1 cat, rent is no less then 2000$, difficult to save
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
shouldn't how much one saves depend on when one plans to retire, and how much one need after retirement? I think the 50/30/20 rule is only good as a reference point, and has the drawback that any "one-size-fit-all" solutions have.
I'm sorry, but this video applies to people that make above average salaries. Plenty of Americans don't have good pay or even health benefits at their job. Or they have two or three jobs. As someone who works with animals, I have great benefits that rival federal workers, but my pay isn't the greatest. Most of my building has a second job, even though 75% of us work full-time. This video - or TFD - don't address the fact that rent can be almost all of your take home pay in most areas, and that's before electric, heating, internet, groceries, cat payments, etc. You can't get ahead if you're stuck in generational poverty, not without making some serious sacrifices that is. In some places it's just not feasible to move for better work opportunities, as people could he moving away from a stable home or environment. TFD caters widely to the upper middle class, which may be their intended audience, but still... Think about the people on limited incomes, those on SSI, people with chronic illnesses. It's getting pretty frustrating to take TFD to heart lately. I hope they take to heart what their audience is saying and turns their content around a bit.
If it isn’t a written game plan for exactly how your money will work for you... that’s not a budget. The 50/30/20 rule is for people who don’t want to actually sit down and budget but want to feel like they are in control.
Having a guideline is a good start but I think this rule is overrated. We should review all spendings and have a real talk to yourself about each spending like do I really need this? Does this really make me happy? Finding your own percentage and balance is the best way.
Rent is too high. Pay isn’t high enough. No one can “easily” adjust it. The only way to cut rent payment is to quit my job but then I have $0 income. This doesn’t help at all.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Hello. I don't see the 50/30/20 budget template in the description. There is a calculator if you hunt for it in the article this video is based on, if that's what was meant. I also am not sure about how I feel on some of those "leisure" choices. If I have made a commitment to donate to a church or charity, isn't that more of an investment rather than a "for fun" expense? Same with membership dues. Otherwise I liked the video. Just looking for more perspective.
I hate % based methods (even though through pure coincidence my budget aligns with the barefoot investor 60/20/10/10 nethod). As your income increases it gives the idea you can then spend more on things you dont need to (lifestyle creep) but if your income decreases what... you move into a smaller place and sell your car?? Not possible for many people. Yes its a decent guide, but it should also vary highly depending on where you live.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
Too bad most people with a low income would be happy if not more than 80% is going to the category that should be 50%. That doesn't mean that spending money on yourself and saving money aren't important, but sadly the 50/30/20 rule isn't possible for lots of people. I don't know if incomes should rise, housing should be cheaper (usually that's the biggest cost) or if it's a bit of both, but something should be done to allow everyone to do this.
Thanks for your comment. Expert Manuel is currently handling my crypto for me and he's making me huge profit turning 2BTC into 4BTC in 14 days and making me $400,000 weekly by putting $50,000 indeed I'm amazed
