How To Manage Your Money: The 50/30/20 Rule

If you are looking to get your finances in order, this is the video for you! The 50/30/20 Rule of money is an essential concept to understand and implement in your journey to financial freedom.
Not only can this strategy help you save more money, but it will also allow you to create and understand a thorough budget that you can use as a blueprint towards financial success.
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I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
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[@NateOBrien]

2020 is only a few months away! Hope everyone is setting and hitting their goals for this year. What’s the most important financial goal for you in the future?

[@emanmz1186]

Creat a year expenses saving for My business

[@billiejl6237]

Minimize revolving debt, school loans and maximize savings / retirement.

[@SeeThroughScreen]

Dude, I just need to learn about investing. Well not learn, but like really starting to know what to do. I need help

[@ismaelreyes6990]

I love all your videos man. I like to be minimalist as well with my wants and just generally using what I truly need. Like this video helped me understand alot of different choices.

[@remmiellis]

Nate O'Brien I'd like to make an investment into property

[@ajh.4131]

He's only 21 but very knowledgeable about money management. Very admirable.

[@advenvilla]

He's my idol

[@jonasalvarez7191]

Cause he reads

[@niteshh2073]

He learned than teaching u also do same but first learned

[@danielzamora8738]

I'm 23 I'm learning how to manage money I watch all his videos

[@themusicman669]

Back in the day, people in their teens and 20s actually had to know these things. Our modern society allows more and more young people to be immature and just skate by on their family’s money.

[@ssdskully]

Here is mines Needs: 40% Wants: 20% Saving: 40%

[@NateOBrien]

I like the ratio! Keep up the good work!

[@lonnekhalid2395]

@@NateOBrien u forgot inflation. And that’s why your dad invests dude !!

[@calvinraab8798]

Often times handling your money can seem complex but if you break it down into simple rules like this is all becomes a lot easier!

[@BRBallin1]

That's how most complex things are. They are just simple ideas that are connected with each other in complex structures.

[@harrisc42]

Just did this exercise with my monthly budget. Had never done the 50/30/20 math for myself. Happy to see I'm currently at 40% Needs, 25% Wants and 35% Savings.

[@NateOBrien]

That sounds almost perfect! Congrats!

[@TraderJono]

Here is mine Needs: 20% Wants: 30% Saving: 50%

[@KennethRobby]

That’s tough but you’ll be rewarded!!

[@juliusfr4008]

I am 20 years old and you are already a role model to me... Very grateful that I've found you on YT 😀 keep up the great work 👌🏼

[@thecapricorn5416]

Me too nate honestly❤❤❤

[@kaede_jing]

After applying minimalism in my life, my 'wants' have reduced greatly to around 10% or less. 50% needs, 40% saving.

[@Jorgenbircheide]

just found you yesterday, really great content, clear, precise og straight to the point, just what i need. Keep it up

[@SubscriberswithNoVideosC-fi5zu]

Amazing tips Nate! Explained so well, no excuses just follow the rules 🔥

[@justintaylor-moneymindset4073]

I feel like 50/30/20 rule is pretty solid for those getting started with budgeting but spending half your income on needs and 30 percent on wants always seems a little high to me

[@KB-sg7tv]

Depends on which part of the country you live in. Here in Calfiornia the rent is usually half of people's income. Nobody can really save any money for anything because the costs of living is so high.

[@KenTheAdventurer]

That would make sense though he did leave some parts out about money left over so investing could be one

[@michael43567]

Agreed I'm more like 60% needs, 40% Saving & investing

[@willseto1337]

Justin Taylor - Money Mind

[@_zina9054]

Yea I flipped mine 20% want 30% savings

[@eduardolerro1]

Your videos are great - and I love the budget/wealth tracker. Thanks! Glad you're doing well.

[@KrystalToddCPA]

Yes I love the 50/30/20 rule but definitely like you said I encourage people to expand that savings percentage as much as you can as your income grows, you will have much more financial freedom quicker this way.

[@NateOBrien]

Most definitely!

[@soniab.estacio3008]

You are an amazing young man .. I follow you for years ! God bless Nate

[@chrisglaze1410]

50/30/20 is a good minimum. I personally opt to invest the majority of my money, but this is unique because I have low expenses right now in my life. 50/30/20 is a good place to start, but increasing that investment portion will help dramatically.

[@NateOBrien]

Most definitely

[@michael43567]

My 'wants' spending is very limited. Already have a decent emergency fund, so I'm just investing in myself e.g. coding & language courses, books

[@NateOBrien]

Love it! Good luck Michael

[@KrisMichelleCato]

Very informative !!! Needed this because I’m in the process of buying a home next year and surprisingly this video was a requirement in my module for a school I’m currently attending. Perfect timing. I’m impressed. Thank you for sharing! I wish we had learned all this in grade school but I will be teaching my boys this

[@aaronhoward1066]

these videos are going to set me up for a great 2020 as my family grows! thanks man

[@lenarettke6708]

Thanks for all your tips!! 😇 I really enjoy your content! Keep it up 😊

[@mulata523]

Thank you so much Nate, I love all of your videos. Very helpful and inspiring. Keep up the good work 👏👏👏👍👍

[@aasumhussain8886]

Very useful video Nate!! Well done

[@leomcmlx]

Thank you Nate this helped me greatly to understand my finances and improve my savings and pay off my debts earlier.

[@-natmac]

I feel like your videos have struck the perfect balance. They aren’t full of jargon nor are they super dumbed down. Just really easy to follow advice :) great job.

[@NateOBrien]

Thanks! I try my best to have a balance. If you go too in depth, you'll lose peoples interest

[@erickbonilla2495]

All your videos are really good!! Thank you for share and make the time do it! keep going!!

[@mrj0cabz]

Thanks for the info nate!

[@TrailerCashAcademy]

Great video!! Thanks for sharing!

[@haninibraham9975]

Watching and learning from you even though I'm way older 🙂 Thanks

[@goinvest9772]

Thanks for educating us all on how to manage money in this video because everyone need to know this to stay on balance and invest some of the money to earn more money

[@RobbyJhin]

thanks for sharing this!

[@ItendshereXiii]

I love your videos so much Im really lucky that i have found your utube channel Looking forward to ur future vids

[@tshepim6214]

Thanks Nate, explained it really well 🙌

[@sergiochavez3154]

Thanks for the video! I got your template too! I been looking for one to begin taking my budgeting more seriously.

[@NaturallyPrettyBrownK26]

As a nurse I’m doing the 70/20/10 rule- 70% (wants/needs) 20% Savings 10% paying back debts in addition to doing the debt snowball method...once I’m debt free I may switch to the 50/30/20 rule...thanks so much for the information

[@jrmorales822]

Thank you 🙏🏼 for making that budget excel sheet! I’m only 19 and it’s helpful and gives me a lot of think about

[@jedescuzar993]

Im having trouble on locating the said excel file, can you drop it down here? Thanks in advance!

[@pudelfreude]

@@jedescuzar993 It's in the description where it says 'Net Worth Tracker'. You have to insert your email so it's send to you. You are supporting Nate by doing so. :)

[@lvteachme973]

Great video. You're concise but thorough.

[@NateOBrien]

Thank you! Appreciate all of the support on the channel!

[@johnmoon3848]

Always so good, so clear!

[@NateOBrien]

Thanks John

[@TheWealthPrince]

This is the rule I used when I started budgeting, it really is so helpful and after a while becomes second nature!

[@NateOBrien]

Glad you have been using this too!

[@jasonlavelle2069]

As usual...bringing us excellent content , great work buddy

[@NateOBrien]

Thanks Jason!

[@whattime9789]

Great video nathan. Ready for 2020!

[@NateOBrien]

I can’t wait!!

[@caror0]

This is so helpful! Thank you :)

[@deanberger9597]

SMASHED the like button! All true info!

[@Officiallydaiya]

Wow . Thank you !!!

[@ChristaBello]

Great job Nate. Your videos are valuable.

[@NateOBrien]

Thank you so much Christa!

[@RafunzelReyes]

🖤🐈‍⬛ Yay! Now you like a real teacher here.💗 Love, I wish I found your videos earlier than I did. They are all informative and useful. 💎

[@afshinhde7689]

thanks its vary helpful

[@ld8722]

I’m definitely a fan of the 50/30/20 rule. Simple and straight forward. As always great stuff, Nate😎

[@NateOBrien]

Thanks Luke!

[@andreakae4211]

I really appreciate how you acknowledge how certain financial guidelines are much more difficult and sometimes impossible on a low income. I can’t believe how big of a difference going from low wage to mid wage made in my life - you’ve said it before and it’s correct, it’s expensive to be poor!

[@NateOBrien]

It truly is more difficult

[@yassirlazreq9296]

Here's mine Needs: 30% Wants:20% Investments:50%

[@michaelchiayin351]

Thank love it !!!

[@canceraxe1447]

Great man, please keep it up!

[@NateOBrien]

Thanks! Will do

[@niczil0603]

20% Need, 10% want and 70% invested works for me. Good video tho

[@evasetyo2314]

Thanks Nate, I never think about this before as I have no any idea.

[@NateOBrien]

Thanks for watching Eva!

[@TheArtofKAS]

Thanks a lot for this vid Nate. I've been teaching my friends about this same topic. I'm Glad i was on track with the information im providing.

[@NateOBrien]

Thanks 🙏🏼

[@Rikheron]

great channel love the content

[@NateOBrien]

Thanks Rik!

[@jeremybevans3386]

I’m 25 and I love your advise!

[@NateOBrien]

Thanks Jeremy!

[@pepcaladno6251]

Really like this guy, so calm and just nice to listen to :) Good content

[@NateOBrien]

Makes me smile when I see comments like this one. Thank you

[@RamaSivamani]

I follow this for now but my long term goal is 25/40/35. 25% needs and wants combined so total expenses on myself, 40% savings and investment, 35% giving back and generosity. If I can raise my income to point where this is sustainable that would be the goal.

[@lunasarah5555]

Great advice!! 😊

[@NateOBrien]

Thanks!

[@remmiellis]

This seems like a really popular way to manage money that a lot of people agree on. But I think there’s a disconnect between people and putting their expenses into categories... like the 20% to pay yourself could easily become another meal out or used to pay rent.. this method doesn’t work without real effort. However very effective if you can

[@NateOBrien]

I’m hoping people can find value in this video

[@schoggikuacha1166]

Very interesting video. It's a new input for me, and makes totally sense. Here in Switzerland I have never heard of this rule, the only rule I know is, that your flat should not cost more than 30% of your income. And to manage money my ex actually had a quite good strategy. He always put 30% of his loan on a seperate bank account, to save it for taxes. Fixed limits on food, clothes etc., per month, and a list of all yearly bills, with estimated amounts, so he could keep track of them. He had about 10'000SFr in his bank account as a baseline, everything that was more at the end of the month, would be transferred to his saving account. When I'm done studying and finally earning money I will also use his system.

[@influencerunchained-digita4763]

Good advice Nate! 🔥I always try to save as much as I can to put into investments! Compound interest is monstrous!!

[@NateOBrien]

Compound interest truly is the 8th wonder of the world

[@kenlynch6332]

Like you mentioned near the end - switching to 50% - 20% - 30% - is an an important step to financial security, especially in these days wherein employers rarely "Matching Investments" Fortunately in my early working career My employer provided a 6% Match . 💵 💵 💵 💵 💵

[@LovlyPan]

Love the video, some really helpful information - I didn't see the attached spreadsheet however?

[@yomnamosa488]

You’re rock😎❤️

[@DanielIles]

These are great guidelines! For most people though saving and investing AS MUCH as possible is even better. Don’t limit yourself just because you have “done enough”!

[@NateOBrien]

I like to switch them

[@sumyum]

Very Practical!!!

[@NateOBrien]

Thanks

[@CryptoDrew]

Great video very informative pressed like!

[@NateOBrien]

Thanks Drew!

[@sonyamoody2368]

This is a very good strategy for managing money. The only thing I would add would be charity gifting (tithing, community, etc.) to the mix. Charity giving is important to others and may be tax deductible. This is a personal decision, and one I highly recommend.

[@Lisa.M.J]

@Sonya Moody I totally agree. Great point! Thanks for mentioning it! 😃 I think it’s important to budget charitable giving into our personal expenses-especially if it’s planned, like a monthly or yearly lump sum donation.

[@NateOBrien]

Without a doubt!

[@gajdokristof]

@Nate what is your suggestion? For example: 50/20-25/20/ and 5-10 for charity? Charity is a WANT (for your soul) or an INVEST (for the future of your community)? :)

[@lavaughnwilliams4233]

God, I love this guy!

[@ToquzOghuzKhaganatekhan]

Gut info

[@garyclarke8862]

Nate, again it is an inspiring video. I have never thought of your plan. I do have debt and am careful not to make more. I have adopted the snowball debt payment method. Instead of paying for car repairs I paid off one account of R1750 and decided to take out a service plan which I will pay up front 1 years subscription or else it would cost me an extra R3.50 per month on debit ordering charges. The last time I went to a restaurant is ages ago. I enjoy cooking so I don't go out to eat except if it is a breakfast at Wimpy. The 30% on clothing is something I am conscious of. I suggest clothing purchases should be 1 item a month. Set of 5 socks, a shirt or 2 at a stipulated price or underwear.longs or a belt. And buy quality not quantity.

[@StewV]

i love this this is epic

[@deem.4527]

I think this rule is great for people who are just starting with budgeting

[@tonythegreat4275]

You should teach financial freedom!

[@ToquzOghuzKhaganatekhan]

Thx

[@NickPeitsch]

With experience, I believe someone can improve these ratios to 50% savings/investing, 30% living, and 20% wants! Great video for beginners in budgeting :)

[@NateOBrien]

That is the goal!

[@baldguy1964]

Difficult for low income group

[@jacobg8640]

That's why you start with what the video said. Do this when you have the financial means to do so.

[@outlaw2747]

Soon as I got the notification I jumped on. I want to save money on a Friday night, not spend it. Lol

[@NateOBrien]

Love it!!!

[@remmiellis]

Nostradante hope you like eating pasta and eggs! LOL

[@outlaw2747]

@@remmiellis I have some fruit and veggies at home. Lol

[@toby_demoss]

1. Calculate Post-Tax Income 2. Add back non-tax deductions 3. Run a budget - 50/30/20 Rule - 50% Needs - Housing - Food - Healthcare - Utilities - Minimum debt payments - 30% Wants - Clothing - Phone - Restaurants - Entertainment - Vacation - 20% Save/Invest - IRA - 401k - Debt repayment - Emergency fund

[@investthemarket]

I’ve got a new born baby now and I can manage to follow this template & save and invest no excuse for anyone else :) great video man

[@NateOBrien]

Wishing you the best of luck!

[@investthemarket]

Nate O'Brien Thankyou Nate 🙏🏻

[@samuelwalliser3605]

Thanks for the video:) I would say the 10% for donating is also very important

[@AdultingShouldntSuck]

Yes! Everyone leaves out the 10% for donations. 🙌🏼

[@giocondakisses]

Gracias!

[@NateOBrien]

Thanks for watching the video!

[@NateOBrien]

Thanks for watching the video!

[@SandieCastaneda]

this is the best haha, KUDOS :D

[@aleomessina]

Nate, how do you smash it in every video talking to the camera with NO BREAKS 😄 It blows my mind! I'll leave this comment here to help with the algorithm bro - Thanks for the great advice on this video 🔥🔥🏆

[@majybah]

Thank you Nate I been watching your videos I don't comment much , but you are appreciated.

[@NateOBrien]

Thanks so much Mohamed

[@saiyamkesar5740]

It’s really helpful eh, thanks

[@drizzy0712]

Also a helpful tip, if you are still with ur family or in highschool, try out a 60-40 rule (want 60%, save 40%)

[@adriano1309]

honestly i’d go 50/50

[@NateOBrien]

If you are living with your parents you can probably save closer to 70 or 80%

[@Vagabundox333]

Thanks man i have huge financial problems because of my spending habits. And I just get 5$ per hour in my job on puerto Rico. (Under the minimum)

[@NateOBrien]

I love PR, glad you guys dodged that hurricane last week. Good luck

[@GrowthMindsetProductions]

*Real* *estate* *is* *my* *favorite* *way* *to* *invest* . Just keep in mind that if you plan on purchasing a property to rehab and rent out, have about 20% of the purchase price in reserves in case any surprises happen along the way. Cheers!

[@ederklinser9331]

I am doing great with 50% saving 30% needs & 20% wants

[@NateOBrien]

I think that is the best option to aim for.. 20% savings and investing is nice but 30% should get you to retirement much earlier

[@juanjere00]

Hi, very helpfull the videos. you mentioned the temple spreadsheet were can I get them?

[@shardadoordashbrown9042]

phone is a need for emergency, just don't buy expensive plans

[@NateOBrien]

$15 flip phone

[@crazyhappenings1938]

@@NateOBrien I work from my phone literally and flip phone with minutes or unlimited really, and you have a flip phone?!

[@TheEugeneTrotter]

My wife and I pay $10 a month and phones costed us $30 (both phones included in that price), these phones are the kind you get for the need. Anything more are a want.

[@jacobg8640]

My mom didn't get us smartphones until a year ago during my Junior year of college. Only $130 or less I think a year. Barely get any data, but wifi is usually available and I just don't waste data on useless apps if it isn't. Very affordable.

[@sheesh1816]

I’m 21, atm for me is: 50%: Transport, Saving, Invest, Bills, Utilities, Necessity 30%: Investing in Index Funds 20%: Saving or Debt Repayment

[@darknight3613]

7:17 i swear i'm that blue guy you drew there xD

[@seiragonarac3797]

Count me it 😂

[@LTJuni0r]

Phone/Internet access is a need is 2019.

[@AndrewPaulDavisFilm]

Dude literally playing guitar while i watch this, haha. Love your note at the end about not depriving yourself of your passions. Started my Roth IRA because of the vids, thanks man.

[@NateOBrien]

So happy to hear Andrew!

[@abrahamsanchez5350]

Legends say, his closet has an infinite number of long sleeves of infinite different colors

[@NateOBrien]

Mostly black + dozens of Hawaiian shirts but they’re not very professional

[@infochazz5070]

Great advice. Just became Debt free, to much money wasted! Now 29 and made a budget, 50% for investment and savings, feels great!

[@NateOBrien]

That's incredible! Congrats!

[@i8kiwis21]

Just cut my wants to 5%. Wish me luck 😎👍

[@Ramiillszx]

Let us know how it goes Kevin

[@fredbatuukamusisi690]

Hello, Nate, I was looking for the tracking temperate of excel you talked about in this Video, but Didn't find it. thanks for the information it was really great. please send it to me.

[@charitynjokivlogs7897]

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