70/20/10 budget if you make 17 per hour 💸

Hey everyone! 👋 So, you've heard about the 70/20/10 budget rule, but how does it actually work when you're making around $17 an hour? I totally get it, understanding how to apply these rules to your specific income can feel a bit overwhelming at first. But trust me, once you break it down, it's one of the simplest and most effective ways to take control of your finances. Let's dive into what each part of the 70/20/10 rule means, because it’s more than just numbers – it’s about making your money work for you. The 70% is for your 'Needs' – these are your essential Living Expenses. Think rent or mortgage, utilities, groceries, transportation, and insurance. These are the non-negotiables that keep your life running smoothly. The goal here is to keep these expenses under 70% of your Monthly Budget so you have room for everything else. For me, carefully categorizing these helps a lot! Next up is the 20% for 'Wants'. This is where your Daily Spending money goes – things that improve your quality of life but aren't strictly necessary. This could be dining out, entertainment, new clothes, subscriptions, or that fancy coffee. It’s important to give yourself room for these things to avoid feeling deprived, which often leads to busting your budget completely. It’s all about balance! Finally, the 10% is dedicated to 'Savings' and debt repayment. This is crucial for building your financial future. Whether it's an emergency fund, a down payment for a house, retirement contributions, or paying off high-interest debt, consistently putting money aside in this category is a game-changer. Even if it feels small at first, it really adds up over time. Now, let's tackle a common question: "Is $17 an hour good pay?" Honestly, it's a bit subjective and depends a lot on your circumstances. If you're working 40 hours a week at $17/hour, that's $680 weekly, or about $2,947 monthly (before taxes). Annually, it's roughly $35,360. But whether that's "good" really depends on where you live and your lifestyle. For example, $17 an hour might stretch further in a lower cost-of-living area like some parts of Texas compared to a major city like New York or Los Angeles. What matters most is that you can comfortably cover your Living Expenses, enjoy some Daily Spending, and still contribute to Savings. So, how do you put this into practice? My biggest tip is to start by calculating your actual take-home pay (after Pre-Tax deductions like health insurance and taxes). Then, use that net income to apply the 70/20/10 split. Let’s say your Income/Mo after taxes is $2,400. That would mean: Needs (70%): $1,680 Wants (20%): $480 Savings (10%): $240 The key is to track your spending for a month or two to see where your money is actually going. You might find you're spending 30% on Daily Spending and only 5% on Savings! That's okay, because knowing is the first step to changing. You can always change splits and see what works for you. Maybe you start with a 60/30/10 or even a 70/15/15 if your needs are higher or you have specific debt goals. The beauty of this rule is its flexibility to adapt to your life. Remember, little changes make a big difference in your financial journey!