Ep 424: If Your Budget Isn't Working, Here's Why
HerMoney with Jean Chatzky
Shownotes Transcript
Is your budget working? The 50/30/20 budgeting rule — one of the most popular budgeting methods that has been around for 20 years — was created by Elizabeth Warren (yes,* that* Elizabeth Warren) and has largely been seen as the “gold standard” of budgeting ever since. But does it work for today’s economy? There’s also reverse budgeting, which we use in our Finance Fixx program), and has helped our participants save an average of $1,500. The point is, we have options, and our goal with our money should always be to find the one that works best for us — especially when our budget isn’t working the way we need it to
This week, we’re talking about 60/20/20 budgeting with Sean Pyles, host of the Smart Money podcast. He shares why he thinks this budget is a better framework to follow, and how we can all make budgeting just a little more fun.
In Mailbag, we hear from someone who’s in the market for a car and is wondering if now may be the best time to buy an EV. We also hear from a listener who is looking for strategies to consolidate her credit card debt to lower her APR.
Chapters:
00:00 The 50-30-20 Budgeting Rule
**03:19 **Different Perspectives on Budgeting
**08:48 **Adjusting Budgeting Categories for High-Cost Areas
**12:10 **Cash Stuffing and the Fun Side of Budgeting
**20:04 **Considerations for Buying an Electric Car
24:53 Managing High-Interest Credit Card Debt
**Takeaways: **
Budgeting is not one-size-fits-all and should be tailored to individual circumstances and preferences.
Tracking spending can help identify areas where expenses can be reduced or optimized.
Consider alternative budgeting methods, such as budgeting backwards or using the spending and savings bucket method.
In high-cost areas, it may be necessary to adjust budgeting percentages to accommodate higher expenses.
When dealing with high-interest credit card debt, explore options like negotiating lower interest rates or considering a balance transfer or debt consolidation.
When buying an electric car, consider factors such as charging infrastructure and range anxiety.
Explore not-for-profit credit counseling agencies for assistance with managing credit card debt.
More money news when you need it! Get the latest and greatest updates on all things investing, budgeting and making money. Subscribe to the HerMoney newsletter at Hermoney.com/subscribe)!
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