Why the 50/30/20 rule might not be the budgeting magic you think it is...

How do you fit spending into a bucket without analysing where each individual expense belongs?

June 08, 2025

Dear Fellow Financial Freedom Seeker,

You’ve probably heard of the 50/30/20 rule:
👉 50% of your income goes to needs
👉 30% to wants
👉 20% to financial goals like saving or debt repayment

It sounds simple. But here’s the catch…

Before you choose any budgeting method, you need to ask yourself: What do you actually want from your budget?

➡️ Do you want to feel more in control of your money?
➡️ Do you want to spend guilt-free and still hit savings goals?
➡️ Or do you want to stop the paycheck-to-paycheck cycle once and for all?

Because if you try to follow the 50/30/20 rule without adjusting it for your real life — especially with how high bills and rent are right now — it can actually leave you feeling more restricted than empowered.

Plus, breaking down your spending into “needs,” “wants,” and “goals” isn’t that high-level at all. It takes time, reflection, and clarity — and no one teaches us how to do that properly.

💡 This week’s One Simple Step is

Think about what you want your budget to achieve — then choose a method that supports that.

If you’re ready to build a budgeting system that’s realistic, personalised, and actually works for your lifestyle — not just someone else's percentages…

🎯 Join my FREE Budgeting Webinar:
I’ll teach you how to create a budget that helps you feel in control, save money, and still enjoy your life. No restriction. No guilt. Just results.

Til next time,

Pernia | Your Finance Travel Buddy

P.S. Forward this to a friend who’s tried the 50/30/20 rule and felt more confused than clear!