What is the 3 saving rule?

Okay, so you wanna know about this “50/30/20” thing, huh? It’s basically a super simple way to think about managing your money. I mean, who doesn’t want to get better at that? I know I always feel like I could be doing better!

So, the idea is, after you’ve paid your taxes (yuck, nobody likes that part!), you break down your money into three categories. Forget complicated spreadsheets – this is all about keeping it chill and manageable.

First, 50% goes to your “needs.” Think about the stuff you absolutely have to pay for to, you know, survive! Rent or mortgage, groceries, transportation to work… basically, the things you’d be in serious trouble without. It’s the roof over your head, the food on your table. When I first heard this rule, I was like, “50%? That’s it?!” But when you really break it down, it’s surprising how much of our income goes to these essentials.

Next, 30% is for your “wants.” Ah, the fun part! This is the stuff that makes life enjoyable – eating out, going to the movies, that new pair of shoes you’ve been eyeing. You could technically live without these things, but honestly, what’s the point of working so hard if you can’t enjoy yourself a little? It’s the “treat yourself” category, but, important reminder, don’t go crazy!

And finally, 20% is for “savings and debt repayment.” This is the responsible adult part, and probably the hardest for most of us. Paying off credit cards, student loans, building up an emergency fund, saving for retirement… all that jazz. It’s not the most exciting, I’ll admit, but future you will definitely thank you for it. I’m trying to put more into this category myself, especially with retirement looming vaguely in the distance (eek!).

So yeah, that’s the 50/30/20 rule in a nutshell. Does it work for everyone? Maybe, maybe not. But it’s a great starting point for getting a handle on your finances and making sure you’re not just living paycheck to paycheck, you know? We can all use a little help with that!