![]() If you need help crunching the numbers, download a budget app to get started.Ġ2 of 05 Adjust the Budget to Your Lifestyle and Needsīudgets, like the 50/30/20 budget, shouldn't be considered hard-and-fast rules, but instead can be used more as a customizable scale. "When you think about that 50 percent bucket, it just gives you a little bit more flexibility to pay say 35 percent or 40 percent of your income for rent if that's what you have to do," Lewis says. ![]() The 50/30/20 rule, in comparison, provides a little extra room and more options for budget customization. Lewis explains that the 30 percent rule is based on a middle-class viewpoint and that "not everyone can spend less than 30 percent of their income on rent if they have a low income." Spending less than 30 percent on rent can also be difficult in certain cities where there's a much higher cost of living. ![]() The 30 percent rule, on the other hand, is based on the idea that you should spend no more than 30 percent of your income on rent-but it leaves quite a few people and considerations out of the equation. The 50/30/20 rule dedicates 50 percent of your budget to necessities (like rent, groceries, utilities, medical bills, etc.), 30 percent to wants (like "just because" shopping or dining out experiences), and 20 percent to savings and extra debt payments. Unfamiliar with these concepts? Here's an overview: However, when it comes to popular rent-related budgets, they both agree that the 50/30/20 rule is preferable to the 30 percent rule for some people (especially those with lower incomes). Neither Reiches nor Lewis stands firmly by just one budgeting rule. 01 of 05 Pick the Right Budget for Your Income
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