And with inflation increases, some of the costs shown in the project will likely be even higher for the selected families. The website pulls average income data from the 2014 American Community Survey run by the Census (and though it’s a bit dated, it works for illustration purposes) and estimates take-home pay from ADP’s salary paycheck calculator. Where the 50/30/20 Rule Doesn’t WorkĪlthough the 50/30/20 rule may be a good rule of thumb for individuals, it can be unrealistic for those with low incomes or who live in areas with high living costs.įifty Thirty Twenty, a project created by a graphic designer for the federal government, illustrates the difficulty of following the 50/30/20 rule on different incomes and various household sizes. Based on our example, this person could allocate some of their “wants” funds to ramp up their savings or put additional money toward their student loans.Įnter your own income information into our 50/30/20 budget calculator to see how your budget would look. In addition to offering simplicity, a percentage-based budget like the 50/30/20 can be adjusted to meet individual situations. This fits well into the 30% goal ($1,500).
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