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That 50/30/20 rule was failing me until I swapped two numbers
I was barely saving anything each month with the standard 50/30/20 split. Switched to putting 40% toward needs, 20% wants, and 40% savings, and after 3 months I had $1,200 extra in my emergency fund. Has anyone else tweaked the percentages to something that actually worked for their situation?
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juliashah11d agoMost Upvoted
@norab21 said it's not that serious, but that 40% savings rate is just extreme.
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the_emma20d ago
I mean you're basically just living on 60% of your income now which only works if you're already making decent money. For someone in a high cost area or with irregular pay that 40% for needs would mean skipping rent or utilities.
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