How to Make a Stress-Free Budget: 50/30/20 Rule

[@DowJanesFinancialEducation]

Thanks for watching!! Hope you've found some helpful tips for spending your money wisely. What struggles have you had in creating or sticking to a budget?

[@paulcooneyjr]

Wife doesn't do it! Ha. #funnynotfunny Anyways, thank you -- I find these videos very informative. Question: what budgeting software do you use / like / recommend?

[@rebeccaesthermichelson4896]

Thank you for these videos! I have two questions: 1) Do you have other amounts you suggest for an emergency savings fund? I've heard others suggest 3-6 months of living expenses - what do you think about that? 2) How do you suggest further breaking down the 20% of Savings? For example, what % would you allocate to emergency fund, Roth IRA, brokerage accounts, crypto, etc.?

[@hopegray]

Really like this way of looking at a budget- and YES I definitely had too many categories and it was too much effort to keep track of it! I am excited to try this method. Thank you!

[@DowJanesFinancialEducation]

Yup, been there! So glad you found this video helpful!!

[@birgitswitilek1362]

Thank you to explaining what categories are covered by Needs. I look forwards to watching more of your videos.

[@nicolletteramirez]

The food analogy is perfect! Definitely the same formula works for food and money budget; making a plan 🧡

[@DowJanesFinancialEducation]

Thanks! BIG fan of setting big goals and making a plan to get there 💪 I hope this video helps you achieve yours!!

[@w47willrise]

I had a failed budget when the variables were too uncertain, and everyone involved wasn't on board with it. I've since created my personal budget and plan to keep a close eye on it. Checking in monthly to adjust accordingly.

[@DawnOKane]

Dow-Jane’s: 50/30/20 (after tax income goes into); 1/needs2/wants 3/savings

[@sb-fc6uj]

Yep, Ive tried lots of ways to budget. Sometimes I was making mistakes by accounting for the money twice or forgetting bits and pieces which should have been added eg card payments that I couldn't find the receipts for later. I do check in with myself once a week but I sometimes ignore it if Ive gone over because I feel it was justified 'this time' a week later I see I could have done without it. I also had no real goal as I thought Id never achieve a big goal like having a deposit for a house on my wages.

[@susanrissing8291]

The Re Store is an awesome place to find inexpensive materials for home projects

[@kelsey2011]

Love this thank you 🎉

[@anacorona6234]

Thanks for the tips!

[@heathermacrae4594]

Thank you!

[@olivia-in-progress17]

Is this the same in dealing with finance for family? We joined all of our finances together, but not sure how to go about budgeting and investing separately when we have joint accounts. And advice on budgeting for couples will be helpful. Thank you!

[@Wislytig]

I second this, Olivia-in-Progress! Because my boyfriend and I both have trauma about financial planning / finances in general, we have a hard time controlling our frustration when working on a budget or figuring out where we should spend less. Anything that would help couples who have poor relationships with money as individuals, to build a healthy relationship with money together, would be incredibly helpful!

[@kiddieba]

The struggle is that I'm freelance, so my income changes every month, making it hard to budget. That and I get overwhelmed very easily. I just created a third budgeting system for myself to try after failing to find any templates that work for me. It does have a lot of categories but I'm hoping that I'll be able to keep up with something that is customized to me. Fingers crossed! I will look back over that budget to see what percentages I have where (somethings are complicated though....ex: is a blender for my morning a smoothies a need or a want?). Thanks for this video and all the videos you post!

[@athenelq2]

I was just thinking about this. What if you break down each payment for a gig into those 3 categories?

[@kiddieba]

@@athenelq2 Theoretically that would work, the problem with that is that I can work up to 3 different jobs per day, and I work for multiple agencies and direct contract, so breaking down every payment would take a lot of time and energy.

[@kinesiologygr3519]

I really love your videos! Thank you for making this subject understandable! How is the 20% saving different to the retirement money?

[@kimnewdelman3838]

Do you have a resource for a free app for budgeting?

[@ShellyHankins]

I love this! Where would tithing go?🤔

[@kelsey2011]

Given up on budgets sooo many times 😅 thank you for thisssss❤

[@Skyblu77789]

Thank you ❤️

[@DowJanesFinancialEducation]

You’re welcome 😊

[@juanarincon5704]

you said after tax income....how do we calculate that? thank you!

[@dushka7319]

Well, it's easy to define percentages, but if my needs are 70%+ of my income, and I already have a full time job, I just don't see how I could lower my needs or increase my earnings... I mean, I guess I could cancel my Netflix, but that won't make any significant difference if my mortgage and maintenance cost me $2400 per month...

[@sunitafisher4758]

🌸 you can increase your earnings Gain side hustle and use that extra money to gain better qualifications for higher paid job

[@dushka7319]

That's such a generic response.... Go out and get a better job... I'm close to retirement, so not an option.

[@veronicanolasco311]

Is this based on monthly income or each after tax pay? Thanks

[@deniseb8783]

When it comes to this method, I've always had some confusion as to whether this amount is per pay period or monthly income. I understand that, for some, the income is the same per paycheck but for others it may fluctuate based on hours worked. Please forgive me if this sounds like a dumb question but I'm sure someone else is wondering the same thing. Thanks in advance

[@justmaribeard-goss]

It was more than I could maintain and complicated

[@lindaviolet5469]

From this training,I may not save, I spend a lot on needs ,80% of my sal. I'll think about this

[@kathleennugent5643]

Do you have any help for those of us not on a salary? I work as a therapist... from year to year my income is pretty stable, but from week to week, even month to month, it's never the same... its really difficult to try and work out a system... even difficult to know how I am doing.... so HOW to I work out a budget on that without getting completely confused?

[@susanlinn1084]

I have always had such a hard time with this because while I have a salaried job much of my income goes to covering out health insurance. My husband does contract type of work and it is hard to know what he will be bringing in. Any suggestions?

[@Savannah-ed4rv]

Only works if you aren't overbudget and can't meet basic expenses. Wants and savings would have to be a big Zero!

[@jenniferdixon2540]

What category are gifts in?

[@amandaherbe1264]

I would consider them to be in wants category

[@cjyoung6065]

do kids fall under wants or needs?

[@anacorona6234]

I shop second hand.

[@angelahenry7098]

Single mother, seasonal-self employed mother has kept me from creating a budget.

[@Karola1984]

Where do your Bills come in? Once I pay Bills. There isn’t anything left!

[@kingabarbara1168]

I gave up many times cause it was too complicated and too boring

[@thegrimmperspective]

No budget is as simple as defining a percentage to needs, wants, and investing. It needs to be tracked and make yourself accountable. 👎🏻