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! The HerMoney with Jean Chatzky podcast is sponsored by Edelman Financial Engines. The podcast team and its host are neither employees nor clients of EFE, however, the show does receive fixed compensation and is a paid endorser and therefore has an incentive to endorse EFE and its planners. To learn more about the sponsorship, please visit PlanEFE.com/HerMoney. Please contact [email protected] if you would like to advertise on our podcast, and to learn more about Airwave, head to www.airwavemedia.com. Learn more about your ad choices. Visit megaphone.fm/adchoices