The answer is simple, darling: the 50/30/20 rule.
Here's the breakdown using an $80,000 salary in NYC (which would be around $60k after taxes)
50%Needs — $30k/year, or $2,500/month
(Rent, utilities, healthcare, groceries, internet. These are the things you cannot live without.)
30%Wants — $18k/year, or $1,500/month
(Gel manicures, subscriptions, workout classes, sushi with the girls, travel)
20%Future-You! — $12k/year, or $1,000/month
(Emergency fund contributions, debt payoff, student loans, retirement contributions etc.)
Here's the thing....
When I started my financial journey, I was FAR OFF from these ratios. You don't just hit 50/30/20 overnight... And it took a YEAR of monthly money dates to get there. Consistency is key! And now that I am within the ratios, life is so much better because I'm living within my means and putting money toward my future every damn month.
As I was working towards the 50/30/20 ratios in my own finances, I also built The Money Book which has become my best-selling budgeting template. What makes it so special is that you input your income/ spending and it shows you how close you are to the 50/30/20 ratios. No literally- it will do the math for you & makes budgeting really easy.
