Budgeting Is Rubbish — But You’re Probably Doing It Wrong

Budgets are rubbish. The idea of tracking and regimenting your spending can seem overwhelmingly tedious, and it certainly can be. Plus, at a time when money anxiety is on the up, reckoning with complicated budgets can feel like opening a can of worms. But not all budgets are created equal.

If you’re looking to get your money in order, one of the easiest, most effective ways to organise your finances is by using the 50/30/20 rule. Senator Elizabeth Warren created the 50/30/20/rule for spending and saving when co-authoring a personal finance book with her daughter, Amelia Warren Tyagi: All Your Worth: The Ultimate Lifetime Money Plan.

The rule is a simple, accessible way to understanding how to best spend your cash. By organising your expenses into three main spending categories, the 50/30/20 rule is a surefire way to getting your spending under control while helping you get closer to reaching your financial goals — all without having to stress over money minutiae.

Read on to learn the simple four steps you need to get started using the 50/30/20 rule in your own life.