For years, I used a very specific financial strategy.
Here is how it works:
- I bought things I wanted.
- I refused to look at my bank account.
- I pretended that if I didn’t see the number, the money was still there.
It worked great… until one Tuesday night. My card got declined at the grocery store. For a $3 bag of apples.
I went home, sat in the dark and finally opened my banking app. I felt sick. I saw subscriptions I didn’t use. I saw hundreds of dollars spent on takeout. I saw that I was digging a hole.
That night, I realized that ignoring your money doesn’t save it. It just makes the monster under the bed get bigger.
Most people hate the word “Budget.” It sounds like a punishment. It sounds like: “You are bad, so now you can’t have any fun.”
That is why most budgets fail. We try to be too perfect. We say, “I will never eat at a restaurant again!”
Then, three days later, we are tired, we order a pizza and we feel like failures. So, we quit.
A good budget isn’t a prison. It’s a map. It doesn’t tell you not to spend. It just tells you where you are going so you don’t fail.
Forget complicated spreadsheets with 100 columns. You only need three buckets.
This is called the 50/30/20 Rule. It is perfect for beginners because it is flexible.
Bucket 1: The “Must-Haves” (50%)
This is the boring stuff. The stuff you need to survive.
- Rent/Mortgage
- Groceries (Not fancy dinners, just basic food)
- Electricity/Water
- Car payments
Goal: Try to keep these expenses to half of your monthly income.
Bucket 2: The “Wants” (30%)
This is the fun stuff! This is why we work.
- Netflix / Spotify
- Restaurants / Takeout
- New clothes
- Hobby supplies
- The “Banana Slicer” you saw on TikTok
The Secret: You can buy the latte. You can buy the shoes. As long as it fits in this 30% bucket, you can spend it guilt-free.
Bucket 3: The “Future You” (20%)
This is for the version of you in 10 years.
- Savings
- Paying off debt (Credit cards, student loans)
- Investments
You don’t need to be a math genius. Grab a piece of paper (or open a simple note on your phone).
Step 1: The Scary Number Write down exactly how much money you take home each month. Let’s say it’s $3,000.
Step 2: The Math
- Needs (50%): $1,500
- Wants (30%): $900
- Savings (20%): $600
Step 3: The Reality Check Look at your actual spending. Are you spending $1,200 on “Wants” and only saving $0? Don’t panic. Just adjust. Can you cancel one streaming service? Can you cook one more meal at home?
Step 4: The “Oops” Fund Life happens. Your car breaks. You drop your phone in the toilet. If you don’t have money for this, you will use a credit card and the debt cycle starts again.
- Tip: Before you save for a vacation, save $1,000 in a boring bank account called “Emergency.” Don’t touch it unless there is blood or fire.
Humans are weak. If I have $100 in my pocket, I will buy a taco.
So, I stopped trusting myself. I trusted robots instead.
I set up an Automatic Transfer. Every payday, my bank automatically moves my 20% (Savings) into a separate account.
- I don’t see it.
- I don’t touch it.
- I learn to live on what is left.
If you wait until the end of the month to save “what is left,” there will be nothing left. Save first. Spend later.
Freedom, Not Fear
The first month I used a budget, I felt weird. I checked my app every day.
But by the third month, I felt something new: Peace.
I knew I could buy that sandwich because it was in my “Wants” bucket. I didn’t feel guilty. I didn’t worry about my card getting declined.
A budget doesn’t take away your freedom. It gives you freedom. It gives you the power to say “Yes” to the things that matter and “No” to the things that don’t.
So tonight, be brave. Look at the scary number. It might be ugly, but itās the first step to making it beautiful.
