When the 50/30/20 can't work

We like Elizabeth Warrens' 50/30/20 rule because it gels with our own simplistic belief...half for today and half for tomorrow.

50/30/20 encourages people to use (roughly):

- 50% of their take home pay on today - (rent/mortgage, food..)

- 50% on tomorrow - (20% to savings or debt pay down and 30% on the the experiences and things you want).

But what if you are one of the many who can't make that work?

Well we're here to tell you that it isn't a rule so much as it is a guideline - a prompt to get us to think about the cash burn.

Let's use it to advance the use of our finances to achieve our best life.

Seven suggestions for the 50% for today:

1. Question everything - Start a fresh budget.

Consider each expense before adding it and examine why? Does that expense deserves a spot on your budget. What are you getting out of it. Is it worth the cost, is there a less expensive way? Hunt down those things in your budget which are not advancing the evolution of you or your family.

2. Question culture

Are you doing things a particular way because that is how it has always been done. Is it how it should be done now?

3. Are you learning?

Are you staying fresh, spending enough time in nature? These enjoyable steps can help reduce impulse and materialistic spend.

4. Smiles, posture and confidence exude far more beauty than the cloth you wrap yourself in. Check that shopping budget

5. Debt - Consider contacting debtors and ask about getting a rate reduction.

6. Let go of things you said you'd never do

Share an apartment, take the bus, cook, drink less alcohol or other recreational habits.

7. Job geography

Technology allows more of us to work remotely which means a move further outside the city or to a different city - or country is possible.

The idea is not to work harder but spend smarter.


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