Woman shares ingenious 50-30-20 budgeting trick that helped her save $5,000 in 3 months

For people who are earning, saving and budgeting is a crucial concept. However, with many expenses and so many recurring bills, it becomes difficult to maintain a consistently healthy budgeting technique. A woman named Milly (@budgetwithmilly_) shared a simple and effective method to help with planning finances. She noted that this method helped her save around $5,000 in 3 months. Her 50-30-20 method allows effective spending. This means you can pamper yourself and pay your bills while consistently saving for the future. 

“The 50-30-20 budget is a simple rule to help you reach your financial goals,” Milly said while explaining how the same works. She explained that whatever an individual’s income is, it needs to be split into three major categories. 50% of the money goes towards a person’s needs. These include rent, utilities, loans and other expenses. Segregating the expenses provides more clarity and like Milly, allows a person to save more if the income permits. While most people would push the rest into savings, Milly has a slightly different plan. The remaining 50% is split between savings and wants. 

Pampering oneself is something we tend to ignore while earning in the bargain of saving. The woman effectively managed both with her ingenious method. She set aside 30% for wants such as shopping, partying, dining out and so on. Lastly, the 20% goes into savings and can be used for whatever future needs arise. The woman noted that she started with an amount as small as $1 and eventually increased it as her income grew. Sharing a glimpse of her folder, she revealed that she saved around $5,000 in 3 months. “I always use this budgeting technique,” she wrote in her caption. 

Several people were impressed by the simple technique. Many were glad to find a method that allowed them to spend, enjoy and also save at the same time. Some added a few tweaks, per their income and expenses. @nadia_lck wrote, “This is so useful for adults!” @theblackcatenergy remarked, “I will definitely try it.” @luna_reima suggested, “I prefer to save first then budget your remaining amount, you get to secure savings and learn to budget your money to what needs to be prioritized.” Budgeting comes easy when you understand where you can save instead of subconsciously splurging. Simple expenses like groceries can offer great potential to save.

For instance, a mom named Amy revealed that it is possible to have an entire Christmas dinner for a family for $25. Starting with a few veggies and breads, Amy spent a few dollars on the same. “Meat is where the bulk of my budget is going. This half-pork loin is priced at $2.99. I found one that is almost four pounds, priced at $7.98,” the mom shared. She also picked up sweet potatoes instead of eggs, some ice cream and even fettuccine to make a scrumptious, filling and healthy meal. The mom added a tip to purchase replacables depending on budget. For instance, butter can be replaced with margarine if the dish permits. The total came up to $24.78. The mom still managed to save 22 cents thanks to simple and smart budgeting.

You can follow Milly (@budgetwithmilly_) on Instagram for more content on frugality and budgeting.