Creating a Budget You Can Stick To
Creating a budget you can stick to doesn’t have to feel impossible. I’m living it—juggling bills, saving, and making room to enjoy life. After a lot of trial and adjustment, I’ve found a budgeting method that doesn’t leave me feeling overwhelmed: the 30/30/20/20 rule. This approach helps me balance my essentials, save for the future, and still enjoy life along the way.
I’m not an expert, but I’ve been actively using this rule for several years now, adjusting along the way. My journey into budgeting hasn’t been perfect, but I’ve learned what works for me, and I want to share those tips with you.
Want to start your own budgeting journey? Download my free budgeting template to make the process easier—it’s the tool that helps me stay on top of my finances, even when life throws surprises my way.
How I’m Using the 30/30/20/20 Rule in My Budget
When I left a toxic work environment for a job that better aligned with my values, I had to accept a pay cut. That change meant I needed to be more intentional about how I was spending and saving my money. I found that the 30/30/20/20 rule gave me the structure I needed to manage my finances.
Here’s how I apply it every month:
- Listing My Income: I start by looking at all my sources of income. This includes my paycheck, side hustles, and any other consistent income streams. Once I know exactly what I’m working with, I feel more in control. Knowing my income each month is key before dividing it up.
Tip for You: Make sure to list all income sources, no matter how small. This will give you a clearer picture of what you can allocate to your budget.
- Dividing My Income: Using the 30/30/20/20 rule, I divide my income into four categories: 30% for housing, 30% for necessities, 20% for investments, and 20% for personal spending. For example, if my income is $5,000 that month, I allocate $1,500 for housing, $1,500 for necessities, $1,000 for investments, and $1,000 for personal spending.
Tip for You: Try using this division to organize your finances—it’s flexible, and you can adjust if something changes.
- Tracking My Spending: I track my spending every month. This helps me see how close I am to my goals in each category. Sometimes I overspend in one area (hello, personal spending!), but seeing the data helps me adjust the following month.
Tip for You: Track your expenses. Whether you use an app, a spreadsheet, or good old pen and paper, tracking helps you stay accountable to your budget.
- Adjusting Each Month: Each month is different, and that’s okay. Some months, I spend more on housing repairs or my personal spending shoots up, but the 30/30/20/20 rule gives me a framework. I adjust where needed without feeling like I’m derailing my overall plan.
Tip for You: Be flexible. If you spend more in one category, try cutting back in another the next month.
Want a tool to help with tracking and adjustments? Download my budgeting template to get started.
How I Allocate My $5,000 Income Using the 30/30/20/20 Rule
This is how I manage a $5,000 monthly income—and yes, some months are smoother than others.
1. 30% for Housing
I set aside $1,500 a month for housing, which covers my mortgage, property taxes, insurance, and utilities. My goal is to keep my housing costs under 30% so that I don’t feel overwhelmed by bills.
However, unexpected repairs can cause this to go up. For example, last month, my furnace needed repairs, so I shifted funds from my personal spending to cover it. This flexibility helps me manage without feeling like I’m failing at budgeting.
Tip for You: If your housing costs exceed 30%, look at options like refinancing, reducing utilities, or downsizing. Bankrate suggests keeping housing costs under 30% for better financial balance.
2. 30% for Necessities
I allocate $1,500 for necessities like groceries, gas, healthcare, and non-housing utilities. What helps me stay within this category is meal planning. When I plan my meals, I avoid unnecessary grocery trips or last-minute takeout.
Tracking my spending in this category has been eye-opening. It’s easy to overspend on groceries, but logging my purchases helps me see where I’m slipping. NerdWallet recommends tracking your spending to avoid going over budget on everyday necessities.
Tip for You: Meal planning and tracking your expenses are key to staying within your necessities budget.
3. 20% for Investments
I automate $1,000 each month for investments and savings. This includes my retirement accounts and my emergency fund. Automation is a game-changer—it means I don’t have to remember to make manual transfers each month.
Even though my income is lower, I prioritize this category. I want to ensure that I’m building toward my future, even if I can only invest a small amount during tighter months.
Tip for You: Automate your savings and investments if you can. Forbes notes that automating savings is one of the best ways to stay consistent with your financial goals.
4. 20% for Personal Spending
I set aside $1,000 for personal spending, which I enjoy guilt-free. This category is for everything from dinners out with friends to treating myself to something new to gifts. What I love about the 30/30/20/20 rule is that it allows me to enjoy life while still meeting my financial goals.
Tip for You: Don’t deprive yourself—plan for fun spending! Having a designated personal spending category makes budgeting sustainable.
Check out my journey to financial wellness after switching jobs here.
Frequently Asked Questions (FAQ) About Budgeting
Q: What if my housing costs are more than 30%?
A: If your housing costs exceed 30%, try to find areas where you can cut back. That might mean lowering utility bills or refinancing your mortgage. If that’s not possible, consider downsizing to free up more of your income.
Q: How do I stick to my budget if my income fluctuates?
A: I deal with fluctuating income by adjusting my personal spending and ensuring my savings remain automated. When income is higher, I put extra money into savings. When it’s lower, I pull back on personal spending without touching my investment contributions.
Q: How can I build an emergency fund when living paycheck to paycheck?
A: Start small. I began by automating small amounts into my emergency fund each month. Even saving $25 or $50 monthly will add up. The important thing is to make saving a habit.
Q: Can I adjust the 30/30/20/20 percentages?
A: Absolutely. The percentages are a guideline. If your needs differ, you can adjust the rules to fit your lifestyle. Just make sure that your essentials, like housing and necessities, don’t consume your entire budget.
What Works and What I’m Still Adjusting
To be real, budgeting doesn’t go perfectly every month. Some months, unexpected expenses crop up, and I have to adjust my categories. But here’s what I’ve found that works for me:
- What works: Automating savings and tracking expenses help me stay in control. I don’t feel like I’m guessing where my money went at the end of the month.
- What I’m still adjusting: There are months when personal spending or necessities go over budget. Last month, my furnace repair threw everything off. But instead of getting discouraged, I just adjusted my personal spending the next month to balance it out.
Reflect: Are unexpected expenses messing up your budget? What adjustments could you make next month to stay on track? Check out my essential tips for surviving financial hardship here.
Creating a Budget You Can Stick To Is a Journey
The 30/30/20/20 rule is helping me stay intentional with my finances, even as my income changes. It’s not about getting it perfect every month, but about having a flexible system that allows me to keep moving forward when life throws surprises my way.
Creating a budget you can stick to is an ongoing process. Some months, you’ll feel like you’ve nailed it. Other months, you may need to make adjustments. And that’s okay. What matters is staying consistent and intentional.
Reflect: Take a look at how you’re spending your money now. Can you make room for this kind of balance? If not, that’s okay—what adjustments could you start with?
Ready to start your own budgeting journey? Join the conversation in the Journey with Quincy Facebook Group where we share tips, challenges, and wins to stay motivated.
Download my free budgeting template to get started today!
