The 50/30/20 Rule EXPOSED

50% is for Bill's 30% is to invest and 20% is for what ever. You got it wrong Muhammad

That plan is horrible. It's set up to keep people broke, lol

Jaspreet, does investment amount include 401k contributions?

Okay, how would I invested tho. Where would I put that money

Or just follow Dave Ramsey's baby steps instead

This is the best video ever on 50/30/20. If anyone wanted to know this in more layman terms we got one too.

I love the 70 30 20 rule. everthing you dont spend in wants and needs after the month or payment cycle will go into you savings. the game is to spend as less as you can in wants and needs.

Come on, 50/30/20 it's a rule of thumb to start saving. It's nothing really wrong with it. People should adapt to their personal case.

Why can't I LIKE this TWICE? Love your content Jaspreet!

I like that you make fun of triggered people, being offended is a choice

I do 50/10/40. 50 investing, 10 saving, 40 expense

I use a modified 50/30/20 rule myself, 50% investing / 30% needs and wants / 20% investing for retirement

But what if housing is 62% of your take-home

I'm a big saving believer! Thanks for pointing out those man! You're an eye opener

People used to get rich by saving their money. 5.25% compounded quarterly could take a meager saver into eventual bigger and better things.

50 percent invest,30 percent saves,20 percent need and wants

Invest means lose your hard working money=gambling

i think what you're missing is like anything budget idea, or diet its a roadmap to get you in the right direction, just cause its 50/30/20 doesn't mean if my bills come out to less than 50% im going to move up in apartment or finance a new car to make it 50% no i just roll it into my savings, and on the savings side of things to me savings/investing is the same thing. when i read the 50/30/20 i didn't think it meant put in savings account and only make .09% obviously I will invest and make 10%+. again i think these are roadmaps to help people get smart about money, even if you kept it in a savings account and made .09% and you lost 2% on inflation atleast you'd be saving and hopefully on the right track away from debts and loans, and credit cards that will murder your soul..

Hey Jaspreet, love the channel. I've been watching for about 8 months now. Wondering if we work off the 75/15/10 rule and blend it to 75/25, how does this work with a mortgage? If I am currently investing 25% and have paid the minimum into my mortgage .... with what's left over from my 75% should I put that money into investing or extra onto my mortgage?

50% on debt. 30% on fixed expenses ie BILLS/groceries/ fun money. 20% savings emergency fund investing....sounds good to me. What's bad about it?

When I’m young living with parents all of my money goes into investments lol. All 20k. Waiting until I’m 24, gonna buy a classic Porsche 911.

well just save 5% and invest the other 15% like you say and thats 20%.

Question where would your put genrosity and donations in your budgeting? Do you budget seperately for that or does that simply fall into the 50% spending? Would you think it is better to create a 40/30/20/10 rule if your goal is to pay it forward in life with atleast 10% of your income? I ask because you set the spending percentage as a maximum but you set the investing and saving percentages as a minimum. My method sets the 10% generosity as a minimum so that's why I am wondering if for those people who say giving back is important to them in life that creating a 40/30/20/10 budget is better.

The 50-30-20 rule is total trash. It’s not doable or realistic for young adult in today’s economy.

However- your 50/30/20 rule for TEENAGERS is spot on 👌🏼

The 50 is mandatory as long as it's possible the 20 is the minimum and the 30 can be adjusted to feed the 20.

What if you want to save for a down payment for a house? Where does this come in? 🤔

Wonderful when I first heard about 50-30-20 I thought exactly the same as you which is 50 for all spending, 30 for Investments and 20 for spending.
Although irony of my life is that 90% goes into spending :'(

My understanding was savings also included retirement accounts. Dunno if it's a high enough percentage though 🤷‍♂️

What about if you have 2 kids a fiancée and making only 500 a week?

Watching this made me look at my income/spending ratio. I want to save and invest more.

I always felt the 50/30/20 would never make me rich🧐

That's it- I'm convinced that big business is secretly behind this budget lol

What if we don’t know what to invest in? Wouldn’t that money still be saved money?

I under what he’s saying but savings is still important just in case something goes down you don’t have to mess with your investments

What platform outside my company’s 401K do you recommend?

I agree! The rule does not include paying debt!☝

This all after your out of debt right ?

The 20% of the 50/30/20 rule includes investments... wtf how did you not find this information upon cursory research of the topic?

Like

Hmmm, spending 80% of your net pay (take-home pay) doesn't seem like a move that any of the finance people I look up to would do. And, saving in and of itself won't make you poorer, it will make you richer than if you didn't save. However, "saving" WILL make you poorer when COMPARED to options that offer a higher return on investment, like...investing your money in places that return at least 3% per annum.

Again, saving in and of itself, by itself, ignoring anything else out there, is a fantastic move. Saving 20 bucks is always better than spending 20 bucks, even if it's only worth $19.40 at the end of the year. It's all about perspective!

This is impossible to watch till the end unfortunately. Loads of nonsense. Of course people understand that 20% savings is a minimum amount to save, if you afford more, go for more. And people do understand that saving means investing.... Same with 30% about wants, its just a maximum amount you should be spending... This video assumes that viewer is brainless.

0.1% of $1 is not even one cent. It's actually $0.001. So your dollar only grows to $1.001 - which is nuts if inflation grows at 3% lol

Hello jaspret, im new to this channel. I understand that this video is 3-years old, but i have one query with regards to your 75/15/10 rule?
Which category does mortgage payment fall under?

My man

You don’t know anything about the 50/30/20 budget bro. The 20% is used for investing, emergency fund savings, paying off debt. Do some research.

Thank you.

This is so thoroughly wrong. 50/30/20 doesn't advocate for just saving, and even if it did, the rate wouldn't be 0.09% in a HYSA. The category is savings, but how you use it can definitely include investments. It even includes debt repayment in the savings category, so there's clearly flexibility in the terminology.

❤

AHSANTE