So Your Needs Are More Than 50% of Your Income

Everybody goes through this life extremely different. Some walk into their dream career right out of college, trade school, or maybe even high school and are able to keep their needs category well under 50% of their income.

Sometimes this doesn’t end well, and their wants go to 50% as well and they leave nothing for the rest of saving or investing.

Others have a very different path to that and that is okay. That is just a target to reach for one day. If you can’t do the 50/30/20 rule it is okay. If the needs increase your wants have to drastically decrease well below 30%. If you are in pure survival mode, your wants and your investments have to decrease. Just remember if you are in this situation today that it could change any day. It won’t always be survival mode and one day your needs will go below 50% of your income. That is when you live under your means and pick up the investment percentage to catch back up. Wants will still take a hit but that is okay, living below your means is a way to get back ahead of life. Saving up for a fully funded emergency fund. Saving up for a better house to support your family. Investing enough money so the well doesn’t dry up during retirement. All of these are wonderful things to save up for and if you have a little spending discipline and save/invest correctly these goals can be hit. Even if your income doesn’t hit a major boost as quick as other people

The point of this article is just continue on your path. You will end up raking in more money eventually but at that point you must stay disciplined. It will happen. You can always make it up later so just be patient. I am writing this for me and for any others who needs to hear it. Even if your percentage is 90/5/5 it won’t be like that for long. Try your best to learn new skills and budget appropriately so you aren’t losing money.