I actually think the 50/30/20 rule is way too simple for most people

Last month I tried sticking to that rule from a popular finance blog and ended up way over on needs because rent in Denver is $1,600 a month alone. Has anyone else found a better split that actually works for high cost of living areas?

2 comments

2 Comments

derekwalker11h ago

Lol right, more like 80/20/0 when rent eats everything.

alice_barnes3510h agoMost Upvoted

For real though, the numbers people throw around are always a fantasy. Everyone acts like you can put away 30% but half the time that's just what's left after rent and utilities. People forget that groceries, gas, and just existing costs way more than any chart says it should. I think the real split is more like 50/20/10/20 when you factor in all the random crap that pops up every month. No one talks about the "oops I need a new tire" or "my phone broke" category.