Maybe Budgets Aren’t For Me?

Welcome back to another edition of "Rolling in Dough" Newsletter, where we serve up the simplest ways to save more, spend less, and build wealth with regular insights, consumer psychology hacks, and tiny tips to do today. I hope to make your financial journey a little fun, simple, and totally doable, where ever you are on your wealth journey.

😩 The Struggle is Real

You know the drill – you start the month strong, tracking every dollar, feeling like you’re finally in control with your money.

But then life happens: an unexpected expense pop up, a friend invites you out, and before you know it, the budget is a thing of the past – now you’re just winging it & banking on having enough money in your account to cover things.

The numbers slip through the cracks, you haven’t really set aside money for investing or things you want to do, overspending may even kick in, and suddenly you’re left wondering:

“Where did I even spend my money on this month?” Or,

“Maybe budgets just aren’t for me.” Or,

“Well my bills are paid, I’ll figure out savings and goals later, I’ve got time…”

💰️ The Super Simple Solution: Your B.F.F.

Instead of forcing a strict budget that can also feel like a waste of time, let me introduce you to the 50/30/20 rule.

It’s flexible, realistic, and doesn’t require you to track every penny or burst out a spreadsheet.

The beauty of this rule is that it gives you enough structure to keep your money in check – save more & spend smarter, but enough freedom to still enjoy life. Yasss!

Here’s how it works: With this rule, you break up your monthly income into three easy buckets I like to call ‘B.F.F.’ in my program and book:

#1: ‘B’ for Bills – 50% for Needs:

• Half of your income goes toward the essentials—things like rent, utilities, basic groceries, transportation, insurance, and minimum payments on credit cards.

• These are the must-haves you need to pay just to live and keep things running smoothly.

#2: ‘F’ for Fun – 30% for Wants:

• This is your FUN money—your 'paycheck' or allowance to yourself for the month.

• Set aside 30% of your income for the things that make life more enjoyable—dining out, hobbies, entertainment, shopping, DoorDash, or all those extra treats at the grocery store.

#3: ‘F’ for Future – 20% for Savings or Debt:

• The final 20% of your income is for paying your future self, building your future—whether it’s saving for emergencies or big goals, investing, or paying down debt faster.

• This is a super simple way to make sure you live for now and save for later.

Knowing your ‘BFF’ each month keeps things simple & quick. You’ll stay on track without the stress with bills, with fun and with your future goals – and still have room to live your best life.

🗒️ Let’s Break it Down

Say you’re bringing home $3,000 a month. Here’s how the ‘BFF’ 50/30/20 rule breaks out:

• $1,500 (50%) goes to ‘Bills’ – your essentials like rent, groceries, and utilities.

• $900 (30%) is for ‘Fun’ – this is your wants, your guilt-free spending on things like eating out, fun activities, or a weekend getaway.

• $600 (20%) is for ‘Future’ – and goes into savings or paying down debt, helping you build up money for investing, retirement, homeownership, or chip away at those loans.

Once you calculate these numbers, you know how much to set aside in each bucket.

💰️ Why it Works

The ‘BFF’ 50/30/20 rule works because it gives you permission to spend on what you enjoy, without the guilt.  

The best part? Whether your income goes up or down, the Rule automatically adjusts with you, keeping everything in balance.

Financial freedom isn’t just those big, far-off goals—it’s also about your life right now. It’s about making it easy to build habits and discipline that feel natural and stick with you, no matter what life throws your way.

Psychologically, it’s way easier to stick with this Rule than tracking every single expense. It’s simple, manageable, and doesn’t take up your time.

💰️ Getting Started Step by Step:

Here’s how to get started with the 50/30/20 rule:

1. Calculate your monthly income: Add up your take-home pay (after taxes). This is the amount you’ll be working with.

• Those of you with variable income every month — just take an average of the last 3 paychecks and use this for your income amount.

2. Break out the percentages: Divide your income into 50% for needs, 30% for wants, and 20% for savings or debt. This gives you a clear picture of what you have to work with in each category.

3. Compare your expenses to your buckets: Now that you know your percentages, use them as a guideline for how much to set aside for each category:

• 3a: Bills / Needs (50%): Jot down how much your essential expenses (rent, groceries, utilities, transportation, etc.) usually add up to. Compare this total to the 50% you set aside for needs.

  • If this number is much higher or lower than 50%, see Step 4 for adjustments.

• 3b: Fun / Wants (30%): Now, look at the 30% allocated for fun money. This is how much you have available for things like dining out, entertainment, and hobbies—guilt-free!

• 3c: Future / Savings or Debt (20%): Finally, check how much you can put toward building your future with savings, investments, or paying down debt. The 20% gives you a solid foundation to start securing your long-term goals.

4. Adjust as needed:

• If your bills and essential expenses are taking up more than 50% of your income, don’t worry—you can adjust by reducing your Fun category to 20% or your Future category to 10% (or whatever works best for you). The goal is to keep everything flexible.

• And if your essentials are less than 50%, congratulations! You’ll have extra money for your savings or enjoy a little more fun.

•  Remember: the ‘BFF’ 50/30/20 rule is designed to adapt as your income and expenses change. Once your income increases or your expenses go down, you can adjust the percentages back—it's meant to be flexible.

💰️ Keeping up with the Numbers

Once you’ve got your buckets set, here are a few easy ways to track your progress without overthinking it:

 1. Keep it loose: If you’re good at mentally tracking things, a rough estimate works just fine. You don’t need to get bogged down in every detail—just have a loose guideline for how much is going into each bucket so you can stay on track without overcomplicating it.

2. Use your phone’s notes or budgeting app: A quick note on your phone or using a budgeting app like YNAB (You Need A Budget) can help you track things on the go. Just jot down your spending or check your app to make sure you’re sticking to your numbers.

3. Set reminders: If you like keeping things in check regularly, set a calendar reminder to review your numbers at the end of each week or month. This helps you see how you’re doing without needing to monitor every day.

4. Write it down or use a simple spreadsheet: If you prefer a more hands-on approach, jotting your numbers down in a notebook or plugging them into a simple spreadsheet can help you stay organized and see exactly where your money is going.

5. Check out our Dough Pro Tip below: If you like to keep things quick and easy, the next tip shows how just 15 minutes upfront can take care of things for you each month, so you barely have to think about it.

It’s perfect for people who don’t want to track every penny but like the security of knowing everything’s covered.  

💰️ Dough Pro Tip

Want to make the ‘BFF’ 50/30/20 Rule even easier? Set up direct deposits into 3 separate accounts:

1. Checking account for your Bills / needs: Deposit 50% of your income into this account for rent, utilities, and other essentials here. You can automate bill payments to make sure nothing gets missed.

2. Separate checking account for your Fun / wants: Deposit 30% of your income here. Treat this as your personal paycheck or allowance. The only money in this account is for fun – so you can easily see how much more ‘fun’ you can have for the month without accidentally tapping into bills and savings. And every time you check the balance, it’s like a reminder that you’ve given yourself permission to enjoy life.

3. High-Yield Savings Account (HYSA) or brokerage account for the Future: Automatically move your 20% here for savings, investing, or extra debt. Plus, it’s fun to know you’re paying your future self and to watch your savings account grow!

💰️ Have a Love Affair with Your Life:

Think of the ‘BFF’ 50/30/20 rule as more than just a budgeting strategy—it’s also creating a life you love. Your money should support your dreams, not weigh you down.

Imagine waking up every day knowing your bills are covered, your savings are growing, and you’ve got room to spend on what brings you joy.

This rule isn’t really about numbers—it’s about balance. It’s about living a life where your money allows you to experience the things that make your heart race. 

Whether it’s a dinner with friends, a spontaneous trip, or investing in yourself, the ‘BFF’ 50/30/20 rule helps you fall in love with your life every day.