Hot take: I think the 50/30/20 budget rule is a trap for people in high cost cities.

Last month in Seattle, I tried to follow that rule again after my rent went up. My rent and basics alone ate 65% of my take home pay. That left 35% for wants and savings, not 50%. For three years I felt like a failure because I couldn't make the numbers work like the personal finance blogs said. The rule ignores real life costs in places where a studio apartment is $2,000. I had to make my own system where housing and food get 65%, savings get 20%, and fun money gets 15%. It works for me now. Does anyone else in a pricey area feel like standard budget advice just doesn't fit?

2 comments

2 Comments

noahchen16d ago

The rule is a baseline, not a bible. It forces you to see where your money goes. If housing takes 65%, you cut back somewhere else, maybe on the wants part. People in expensive cities still save money by making choices, like having roommates or not owning a car. Blaming the city is an excuse to avoid tough spending decisions.

the_blair16d ago

Used to blame the city, but you're right.