Pro tip: The 50/30/20 rule saved my bacon after a slow quarter

I run a small painting crew in Cleveland and last spring we had three weeks where NOBODY booked a job. I was sweating bullets because my personal budget was a MESS at the time. Then I remembered a guy at the hardware store bragging about the 50/30/20 rule for his own contracting business. He said, "Put 50 percent of every check into needs, 30 into wants, and 20 into savings like it's a TAX." So I tried it for two months straight and by the end of summer I had 700 bucks tucked away for lean weeks. Has anyone else here found a budget rule that actually works when your income jumps around?

2 comments

2 Comments

the_alice11d ago

Maybe it's just me but I don't see why saving 700 bucks over a whole summer is something to write home about. That's like what, 60 bucks a month? I mean it's better than nothing but it's not exactly life changing money. And the whole 50/30/20 thing sounds fine on paper but when your income bounces around like a ping pong ball, strict percentages just don't hold up. One month you're drowning in needs and the next you've got zero wants to spend on. I'd rather just keep a simple cash buffer in a drawer and call it a day.

james_butler11d ago

@the_alice that cash buffer is all you need. Simple beats strict every time.