The 50/30/20 Rule Is Dead: Meet the New Budgeting Rule That Actually Works Today
For years, the 50/30/20 rule has been the go-to budgeting formula — simple, elegant, and easy to remember: 50% of your income for needs, 30% for wants, and 20% for savings. But as the world changes and prices skyrocket, that formula is starting to feel outdated. In a high-inflation world, it’s becoming harder for most people to fit their expenses into those tidy categories.
If your rent alone eats up more than half your income, you’re not doing it wrong — the economy has simply changed. That’s why 2025 is all about a new budgeting rule — one that fits today’s reality, not yesterday’s math.