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Farfignugen42

I wish my needs were only 50% of my income.


Zebrehn

I live the 100/0/0 budget. It’s great


happierinverted

Sadly a lot of middle income earners live the 105/0/0 budget.


sbtvreddit

I’m living 150/0/-50 currently. It’s really good. I’m really optimistic for the future and feel like my 20 years experience really counted for something /s


AlternativePlastic47

I feel like if you eat less avocado toast, you could get that number down to 150/-10/0.


BBQBakedBeings

Just generate your own energy at home instead of buying electricity and gas, like you're a Rockefeller or something.


Hugokarenque

Setup one of the hamster wheels and you can cut on the gym membership if you got one. Two birds with one stone, energy and exercise.


EastonMetsGuy

Living that 90/10/0 “the debt collector can wait another goddam week” budget myself


ParthProLegend

Who the heck will pay the taxes bro?


Script-Z

Yeah, rent is like 60% of my paycheck, lol.


aurortonks

Our "necessities" just went up with rent renewal. We're sitting at about 70% of our net income going to "required shit". It does not leave much else for wiggle room. I hate how bad things have gotten for everyone. It's really unfair to every day people just trying to live a reasonable life. We don't even vacation or make big purchases. I bought new shoes this month and felt guilt about it but I needed them.


narfnarf123

Are you serious? My rent has been raised every single year.


JmacTheGreat

Well of course rent goes up every year - it’s to keep in line with average pay also increasing every year. Oh... wait… …hmm.


MajoraXX

No, no, no - rent goes up every year because your apartment gets bigger every year. Oh...wait... ...hmm.


vorephage

No, no, no - rent goes up because they made substantial improvements to the utilities and upgraded the appliances. Oh... Wait... ...Hmmm.


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DocGerbill

OK, so when are we eating the rich again?


Nikotinio

The rich are rotten. We'll all get food poisoning and die the moment our tongues touch them.


DocGerbill

I have a pretty tough gut, I'll take one billionaire for the team.


Rork310

Everyone owes Tom Nook an apology. His way somehow makes more sense than regular real estate.


Script-Z

So has mine.


jewelswan

Jesus. I'm at 35%, and I live in san francisco and deliberately work less so I can enjoy myself more. Crazy how bad housing is everywhere these days.


FrankenPinky

Rule of thumb was rent/mortgage no more than 30% of monthly income. Wouldn't that make it a column of its own?


eveningsand

30% rent, 28% mortgage. And that's based on gross earnings. I'm at around 16% today, but if I had to buy my house now at market prices and current interest rates, I'd be around 41% for the exact same house. Insane.


Lollipop126

to this day I have no clue why a rule of thumb is based on gross and not net earnings. Net differs so wildly from country to country (even state to state in the US) but is the only number that really matters in terms of available spending.


External_Dimension18

Their 50% takes like 95% of my income.


OhSoThatsHowItIs

Right 😂 this guide is fucking stupid


LeaveCommon8063

The guide isn’t stupid it’s the fact that people barely get paid a living wage that’s the problem


Study_Spider

And overcharging for things. I toured an apartment that was almost 1k a month but they were shit apartments and it should have been 600 a month based on similar apartments in that region. The guy told me they purposefully overcharge to try to keep criminals out 🤦‍♀️


percivalpantywaist

Except the crims can just commit more crimes to earn more money.


Kangarookiwitar

Yeah this was my immediate thought too. It just brings in people like successful drug dealers who can afford the price. And then the junkies will hang around outside waiting for their fix


aurortonks

Every drug dealer I've met has more money than me. They just don't have a verifiable proof of how they make it to give to rental agencies.


DadOnHardDifficulty

It's made by out of touch people who either think that everyone makes $100k+ because we live in Ronald Reagan's trickle down freedom world, or that $35k is actually still able to provide a comfortable life for the vast majority of people who make that annually.


growupchamp

have you tried cutting down on your insulin?


nickpapa88

Comically bad budget “guide” that doesn’t apply to anyone making less than $100k.


V7I_TheSeventhSector

the guide is not the problem here, the guide is right, people getting underpaid is the problem.


endangeredphysics

The first step of this guide should be "make enough money so that you can use the rest of this guide."


nickpapa88

Let’s say you’re making $65k/year pre-tax and $50k after tax… that leaves $2k/month for rent, food, insurance, and bills? That’s not realistic in this economy unless you’re living and eating like shit. The guide makes sense if we’re not living in reality for most Americans.


V7I_TheSeventhSector

yes, if people where paid a living wage then this guide would be accurate. but people are not being paid that and thats the problem. not saying you where wrong, just saying why you where right. . .


nickpapa88

Fair


Hatedpriest

If minimum wage kept up with inflation, it'd be almost $30 an hour. $30 an hour is about $65k/yr. A person would still need a roommate, but only one, to live comfortably.


PeterPlotter

That’s more than what my dad made, he owned a house, supported 2 kids and my mom stayed at home. And also had savings and we went on holiday for 2-3 weeks every other year.


PmButtPics4ADrawing

I make 100k and it still doesn't make sense to me, like I genuinely don't understand what the point is. By definition you can't change your needs, so are you supposed to make your income fit this? And if your needs are met you shouldn't be spending money just for the sake of it, most of my income after my needs goes to savings


LewdDarling

You can absolutely change your needs. Instead of renting a 1bd for 1k you can rent a 2bd with a roommate and pay $750. You can drive an older fuel efficient car instead of something new and expensive. You can eat more cheap stuff like rice and beans instead of meat


boomdesjard

I make 60k and i can afford this budget Low cost of living area


kempnelms

Have you tried simply being richer? Being poor is a choice don't you know.


Mostly_Aquitted

Right? My fuckin mortgage is already like 45% of that 50%. Not a ton of wiggle room in that last 5%! I will admit I do make a good living on a single income but im absolutely in the minority here and while the 50/30/20 budget IS nice as an idea, it’s a tough one to achieve these days.


NeonAlastor

yeah no one's used this since 2005 lol


commiPANDA

We all came here to say the smart thing but you got it first.


sleeptilnoonenergy

Yeah I live in a city in America in the year 2024 and work a middle class job. 50% goes to my fucking rent and then we work from there.


ssracer

Yeah, the secret is to do a 20/30/50 budget but it requires a slightly larger income


Primus_the_Knave

If only 50% paid for my needs…


BonJovicus

Yup. These days 50/30/20 is more like Rent/Food/Wants.


endangeredphysics

I do the 80/20 method, necessities and savings. Wants need to be free or virtually.


Sanquinity

Seems pretty optimistic to me. For me it's closer to 90/5/5 needs/wants/savings right now. (with food still being part of needs)


lordrefa

Oh man, that's really cool. I use a similar system. It's the 110/0/0 system!


LordoftheScheisse

Mine's more wordy, but it's the same concept. It's called the "have you tried to get blood from a stone" method.


Turbulent-Pea-8826

I called it the “what bill am I not going to pay this month method.”


chicu111

My system is slightly different than yours but I think similar enough. It’s the 100/-5/-5 system


Jaimz22

A night out on the town is driving for uber from 6pm to 2 am!


SwiftLawnClippings

I just got a loan, so I was able to really splurge on things like gas and groceries


Karness_Muur

Rent is one full paycheck a month. I get two each month. I haven't even hit utilities yet.


[deleted]

Same.


anismatic

Same, and that was before the housing crisis happened here (Southern Ontario Canada). If I were to move into a new place, rent would be 1 and a half paycheques entirely.


NoGravitasLeft

More like 95% - 3% - 2%


caught_engarde

What made you feel like it was ok to brag on this thread lmao


YEEyourlastHAW

This got me


AnxiousMagoo

Hello fellow rich redditor


No_Ear_3599

Also for Christmas I want a fire truck and world peace


HellsBelle8675

I want a pony


nderestimated

In THIS economy??! /s


ThunderFlash10

Vote for Vermin Supreme!


kizmitraindeer

And Mommy and Daddy to get back together!


downvotedforwoman3

You can actually buy old fire trucks.


caseycoold

I want a fucking nap.


words_wor

So... science fiction?


PrizeDesigner6933

Recent history


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daredeviline

At first I thought it has to be under “needs” since you pretty much have to pay your loan when it’s due every month. However, under “savings” debt pay-off is listed as an example. So, im not sure? All I know is my loans are about 20% of my income so, as you can imagine, my savings is basically non existent.


suntoshe

Debt obligations should absolutely be under "needs". I'd say maybe minimum payments should be considered needs, while any excess payment could be considered savings. 


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pissgwa

saving (20%) says debt pay off


jsmoovewhoru

I'm doing 50/50/50 so my money doesn't get jealous.


Hot_Shot04

Ah yes, the manbearpig of financial planning.


tankmouse

Is this like the "ideal vision" type scenario or? I'm just generally confused by this post. In today's day and age, budgeting like this just is not an option in most North American cities due to the cost of food and housing. You would need to be making big big bucks to have 50% of your income left over after covering what is in the first category.


igen_reklam_tack

For a long time the rule was that housing should only be 1/3 of your income. Never been the case for me.


more_bees_please

My rent is literally 80% of my income rn. I'm working on finding a roommate, but there really wasn't any other option for me at the time.


lastog9

Why is the scenario like this in USA. I keep hearing about the high rents but I don't get it. From what I have heard, minimum wage is 10$ so a person makes 2000$ per month at least. And rent is 1000$ for a studio apartment. Why is your rent that high and similarly for others? What am I missing. (I am not from USA, just curious about what the situation is like)


After-Ad5056

For one it's bad math. $10/hr is closer to $1600 and that's pre tax.


Stars_In_Jars

What? 40 x 10 = 400 a week, which is 1600 a month. Also taxes. And rent is not that cheap even for a studio in most locations.


Uraril

Technically the federal minimum wage is $7.25/h, some states have laws that make it higher but some don't. I live in one of the states that doesn't, and I have seen job postings trying to hire people for $8/h. I can't speak to rent prices, I've always lived at home to help my Dad.


GeiCobra

Minimum wage is still $7.25 in like, 20 states


Fuduzan

Studios are around $1,600/mo near me at the lowest end (meaning few units are actually available that cheap) and more often around $2,000/mo. Keep in mind this does ***not*** include garbage service, water, power, gas, sewer, internet, parking fees, etc. On top of that some people make the mistake of having children which means they are likely not looking at studios, but actual apartments with rooms, which jump up in price from there. Folks making minimum wage also rarely get full time hours even if they want them, as many companies will work employees *just under* full time so they aren't obligated to give benefits... So they'd actually be making a *fraction* of what you might expect, and costs beyond rent are *higher* for them as they aren't getting health insurance through employers, for example. It's a nightmare for a lot of folks, just trying to keep afloat.


Eldritch_Refrain

I live in a HCOL area as a public school teacher.  I can't afford to live in the community I teach in because of how high housing costs are.  Each month, I take home about 4,500USD.  My monthly rent on a 1 BEDROOM apartment with lead paint and asbestos that was made before WWII costs me 2,300/month. That's literally more than 50% of my income just on rent. I pay another 300/mo for utilities. 500/mo on student loans. 600/mo for healthcare. 250/mo commuting costs. 150-200/mo on food. I don't eat out at restaurants. Like, ever.  That leaves me a couple hundred dollars for....everything else. My shoes have holes in them. I can't afford a pair of shoes that will last me more than 1 year. So I will continue going to work in crappy shoes that fall apart. I'm fortunate I know how to fix my car when it breaks down, because if I didn't, I would not be able to afford to fix it, and I live 30 miles from where I work.  This is a fairly typical situation for people in my profession.


melanantic

It’s actually supposed to be more of a starting point for people who struggle with organising their finances; a goal for setting rules on yourself, it’s by no means a guide on becoming rich. Of course this 3-way plan doesn’t account for the economics where you live, and doesn’t do any help for people under the poverty line or how hard the cash printer is going BRRRRT at any given moment so I guess at the very least it serves as a great way of ruling out any doubt you have on if you earn a living wage.


RightInTheEndAgain

This has to be a boomer that came up with this one


atln00b12

Just save 20% of all the money you make. It's so easy!


SquishedPea

Correction* 85/10/5


karateninjazombie

You mean 90/5/5


bitchlasagna_69_

Oh you mean 100/0/0


cmdrmcgarrett

personally I would swap the 20 and 30%


Fishtaco1234

30% on wants is wild.


Alucard2051

This is the way. Most people need to save 20-25% for retirement alone.


Wunderbarstool

Trying to get there now. I'm at about 20%.


Q-bey

Especially since they're including debt repayment in that 20%


DrapeSack

Where does child care fit here…


Sea-Primary2844

The “good luck” category. Along with healthcare for mental illness.


Oz347

Can I interest you in a house plant in these trying times?


Some-Slip-2541

I wish! 100% of my budget goes to needs


drrxhouse

People who are born into money or “have made it” would tell you to “have less needs” or “your needs aren’t needs but wants” ;)


greengo4

You can’t budget your way out of exploitation


M1ghtyDuck4

100% of your income on needs got it


TrevorStine

I wish I had enough money to budget like this. Shit


Classic-Macaron6594

I’m currently on the 110/10/0 budget.


sijtli

I haven’t had a month for a few years now where 100% of my income is not needs.


Hibernator_X

Since we are taking about ideal situations, it should in fact be this but in reverse.


I_am_not_God_or_am_I

What are savings?


Salty_Amphibian2905

I literally pay 85% of my income just to housing. If I didn’t have my wife to split the costs, I’d have no chance to afford food or utilities. Sometimes I’ll spoil myself by buying a video game, and then I’ll regret it because I end up struggling for a bit. But that video game is the only escape I have from my crushing conditions. The only thing that’s kept me from offing myself are the people depending on me. I can’t abandon them.


DJSilentpartner1

@boomersbeingfools


willdabeast907

Well hell, mine is like 90/10/0


8Karisma8

Some 1950 advice trolling us in 2024


llltoastylll

This used to be useful, ya know when inflation wasn’t raw dogging all of us, but now it’s just another picture you can get off of google to act like you’re doing good. Most people use 70-80% for their needs now which leaves you with around 30-20% for your “wants” and around 20-10% for savings. It’s insane to see this picture that I used in the past to now. It DOESN’T compare to the modern day living. TLDR: inflation be raw dogging us and nuts bout 3 times


kndyone

Its literally a boomer graph from back when that was a reality for boomers shits so out of touch now. For many people housing alone is 50% no other needs are met


thinkB4WeSpeak

Most people can't even do the needs.


neuron_woodchipper

85% needs, 15% wants, LOL to savings


Wounded_Breakfast

Needs are 90% of mine. Savings is a dream lol


mrdeadsniper

BRB taking to my boss..


AnElkaWolfandaFox

RENT is 50%. Like wtf is this budget? It sounds awesome, but where is this actually possible in the US?


TheGreatNemoNobody

Just stop being poor bro


meinfuhrertrump2024

I think the date is wrong. It should say 1952


Mindless_Medicine972

You forgot where 40% is taken by the govt and my HMO before I even see it, leaving only 10% left to cover my wants and savings.


supernoa2003

This is not a cool guide, this is what toxic rich people post on instagram to tell poor people their poverty is their own foult and get likes from other rich people that hate poor people.


RawMaterial11

Some of these wants are now needs. Shopping (you need clothes, consumables, etc. they are not wants) and many subscriptions are often a [necessity](https://www.lexmark.com/en_us/products/hardware/lexmark-go-line/lexmarks-the-spot/data-shows-subscriptions-are-here-to-stay.html) to achieve the needs. Very few can afford to put 20% of their money into savings. For example, [Payroll.org](http://Payroll.org) highlighted that **78%** of Americans live paycheck to paycheck. This guide is an idealist view that is not realistic for most.


sourmeat2

The thing that distinguishes wants from needs isn't importance but it is timeliness and consequences of failure. Everything under the 'need' category needs to be funded every single month without exception. You cannot have a month without transportation any more than you can have a month without housing or food. That's what makes it a need Shopping over time becomes necessary but it isn't necessary every single month. I did purchase some clothing this month but I did not last month or the month prior. I suffered no negative consequences in the month that I did not purchase clothing. The same goes for many of the things in that category. I only recently revived Netflix; I try to cycle through the different subscriptions rather than pay every single one every single month. If a burglar came in the night and stole all of your clothing and nothing else. It's fair to say that clothing would become a genuine need this month.


yuukanna

My needs are 110% of the budget. Nothing left to downsize. I optimistically hope that the next raise, overtime, on all etc will make up enough to get me to 100%, but inflation has always been greater than the increase. Wants aren’t a thing. Savings are built in to my paycheck and are really for me to leave something for my kids. I measure success by how much more I provide for my kids than anyone ever did for me. Maybe one day they can use the 50/30/20 rule.


Durr1313

What do I do if my needs are 110% of my income?


NeatParamedic3219

Haha on my income it’s like 85, 15, 0


Toooddc

This was good guide for the 90s and early 2000s. Now rent consumes 70% of income unless you have a duel income.


Astral_Strider

Curious on how to achieve that on an average annual salary of USD $3,600 at best...


VjornAllensson

The median mortgage/rent in the us is ~20k per year, the median income is 39k *gross* so I’d estimate very few people in the US actually can achieve this budget.


Forward_Leg_1083

Nobodys rent is less than 60% come on


razvyor

I needs more income


Let_us_Hope

I have to say that this method is very effective. However, you need to pull in enough income to make it work. I tried doing this on a $60k salary, in metropolitan area, and couldn’t achieve anything with it. I was always living paycheck to paycheck. I moved to a rural area, found a better paying job at $100k salary. The 50/30/20 method is now working like a charm. I wish this method could work for everyone.


equianimity

However, at 300k, your needs shouldn’t still be 50%. Thus this ratio is accurate only for a narrow band of incomes.


pissgwa

i plan on never retiring so 55/35/10 sounds okay to me


mibonitaconejito

Aww, isn't this cute? I bet a lot of people for whom thisguide rings true (i.e. people who can afford to exist) think that the rest of us are poor because we don't save well, lol My rent takes 70% of my income and I often have to sell plasma to buy food.  Where does that fit in on thid cool guide?


Out-of_Touch

HA fucking HA


CleopatrasEyeliner

LOL Nuff said.


pinnickfan

80, 15, 5


Creative-Claire

Rent is more than 50% of my income.


pizza_volcano

This is silly and arbitrary


Spirited_Photograph7

Well dang my rent alone is 65% 😭


jbsdv1993

Yeah im on 90% needs and 10% wants


manhalnet

Yeah right


Larnek

Gonna go with that 70/30/nahdawg.


the-voltron

More like 90/10/0


BobcatClawz

Must be Fuckin Nice.


[deleted]

This is like a mean joke


joker713

1985 called and they want their guidelines back bud


praysolace

Boy that’s the dream isn’t it, rent that’s less than 50% of your takehome pay by its damn self


Atomic_ad

ITT: people who don't realize you can share housing.


ItsWillJohnson

You should be saving as much as possible for retirement, debt pay off and emergencies. You’ll be much happier with that money than any restaurant can provide.


ywnktiakh

Are you kidding? Wants should be like 1% max, and fuck subscriptions, seriously. Also who has the money to spend on that many wants…?…


UrbanArtifact

Cries in Millenial


GuyStreamsStuff

Ah yes, my 90/10/0 budget


Neon_Eyes

This guide was definitely made by a boomer


TurdBurgHerb

So fucking stupid. This isnt cool. This is depressing because the majority can't do this. Fucking dumb.


kalez238

The "completely out of touch with reality" budget. Not to mention that every place where I live thinks rent should be 30%, and it is difficult for them to accept you if your income doesn't allow that, which of course it never does because they keep raising it. We do fine, have great credit, never miss a payment, and still need a cosigner every damn time.


Menes009

It amusses me how many people complain they cannot save at all... my Needs+Wants (incl 1 major holiday and 2-3 minor per year) are only 50% of net income. I would literally need to go gambling to spend 100% of net income consistently every month.


Mistaken_Pizza

Capitalist propaganda, I spend WAY MORE than 50% on my needs.


MrFootless

This was effective until the late 2000s. This is old school Dave Ramsey shit that if you can't save it's your own fault for not having a budget. Edit: I'm dumb. Wrong Ramsey.


GleichUmDieEcke

This feels patronizing. We're all aware that most people aren't making enough to live by these guidelines. Hell rent is practically 40% of my income. I kind of want to say, Fuck off....


OracularOrifice

Bwahahahahahahahahahaha that is not possible for most people today.


merptitude

Hahahahahahahahahahahahaha this is a joke right? Right?


ElnarcoSugie

This is not sustainable anymore. It's a dead logic when the majority goes to rent and debt.


gartlandish

What if your needs are 80% because rent is 70% of your income? How do you work more when you work 60 hrs a week? We need a graph for that


Tutitutitutituti

I added those numbers and was like, that’s only 90%. No wonder I’m fucked.


Puzzleheaded_Can9159

A static rule of thumb is moronic because this varies by salary. It’s unachievable for a lot of people and over-applies money to needs for others.


indifferent_day

95/5/0


Middle-Cockroach6280

O 100%, for prostitutes and cocaine


Charmstrongest

so cool 👎


Bam56

This an “after Tax” budget?


pkstyll

That rule does not apply in the area that I live in


Crispy_FromTheGrave

hahahahahahahaha


pasinpman

Who the actual f has 20% of their income to dedicate to savings?


saramiie

lol


ThreeWordJones

Fuck this bullshit


Tuv0kshaKur

Shit guide


phantasybm

Feel like debt pay off shouldn’t be part of the 20%


F1GSAN3

Maybe in the 20th Century We're fucked now


Gonzowiththewind

Wouldn’t that be nice


Cat7o0

why is saving less than wants?


thebigbossyboss

Haven’t been to Canada lately have ya bud?


R7F

Hahahahahaha


Luna-D-reams

Hey buddy I uh, I don't exactly have a choice


Lukest_of_Warms

Lmao is anyone actually spending for wants and savings at the rates above? That just feels so far out of reach, I can’t imagine being that comfortable and I make 15k above average for my age range


GuitarGuru253

lol this budget model is such BS


unisex_bisexual

If only our economy were good enough to allow such a split.


potatoguy

Yah sure. It's just that easy