Fool Proof Personal Finance Rules That I Swear By: How To Save Money When You’re Broke
Budgeting is the first step to financial freedom. Here’re the personal finance rules to help you get there.
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Staring at your bank account, wondering how to save when there’s barely enough for bills? You don’t need to be rich; you just need the right strategy.
This post covers the foolproof personal finance rules I swear by, including the 50-30-20 budgeting method, smart ways to cut expenses, and easy saving tricks.
By the end, you’ll have a clear plan to manage your money, build financial security, and take control of your finances, no matter where you start.
This post is all about personal finance rules.
Why You Need a Budget (Even if you’re broke!)
“Struggling with money isn’t just about how much you make, but how much you spend too.”
Budgeting is not just for the wealthy; the truth is, it’s even more essential when you’re broke, and it can lead you to wealth someday.
Without a plan, money slips through your fingers: small purchases, unexpected bills, and impulse purchases add up fast. But when you create a budget, you take control instead of letting your finances control you.
Budgeting does not mean restricting yourself or never having fun; it’s about knowing exactly where your money is going so you can make smarter decisions.
Mindset shift:
Switch from “I don’t make enough to budget” to “Budgeting will help me make the most of what I have,”
Once you have this mindset, everything changes. You stop feeling powerless over your money and start using it as a tool to build the future you want.
The 50-30-20 Rule (A Budgeting Framework)
What Is The 50-30-20 Rule & Why Does It Work?
There are hundreds of budgeting tools out there: spreadsheets, complicated formulas, unrealistic restrictions and they can make you overwhelmed if you are new to the budgeting game.
Your new bestie-the 50-30-20 rule is a simple, no-fuss way to manage your money:
- 50% for needs
- 30% for wants
- 20% savings
There’s no guesswork or endless calculations, just a straightforward framework that helps you balance your spending without feeling drained.
The beauty of this method is its flexibility; you can adjust it to fit your income, whether you’re living paycheck to paycheck or finally starting to save. Once you start using the 50-30-20 rule, budgeting becomes less stressful, and managing your money feels much easier.
How You Can Adjust The 50-30-20 Personal Finance Rules
Here are two example of how you can adjust the 50-30-20 rule:
Example 1: Alison’s Fast-Track Savings Plan
Let’s say, Alison, a 25-year-old marketing professional, is serious about reaching her savings goals faster. Instead of following the traditional 50-30-20 rule, she adjusts it to prioritize savings:
Allocating 30% of her income to savings and cutting her “wants” category down to 20%. Alison makes $4,000 a month, which means her budget now looks like this:
- $2,000 (50%) for needs—rent, utilities, groceries, insurance, and other essentials
- $800 (20%) for wants—dining out, shopping, and entertainment
- $1,200 (30%) for savings—split between her emergency fund, investments, and extra payments toward student loans
By making this tiny adjustment, Alison accelerates her savings without completely giving up the fun stuff—she just spends more intentionally.
Example 2: Lola’s Reality Check Budget
Now, take Lola, who just moved out of her parents’ house and is adjusting to the reality of paying rent, utilities, and a car lease on her own.
With these new financial responsibilities, she realizes she needs to dedicate more of her budget to essentials. Instead of the standard 50-30-20 rule, she shifts to a 60-25-15 split:
- $2,400 (60%) for needs—rent, car payments, gas, groceries, and insurance
- $1,000 (25%) for wants—weekend brunches, concerts, and subscriptions
- $600 (15%) for savings—starting small with an emergency fund and contributing what she can toward future goals
This approach gives Lola some breathing room as she adjusts to independent living while still making sure she’s saving, even if it’s at a slower pace.
The key takeaway? Budgeting isn’t one-size-fits-all, it’s about making your money work for your life.
How To Adapt to Budgeting (Even if you’re living paycheck to paycheck)
Step One: Tracking Every Dollar You Spend (Even the small ones!)
Ever felt like your paycheck just disappeared, and you have no idea where it went? If so, you NEED to start tracking your spending to take control of your money.
The samllest expenses: coffees, random Amazon orders, last-minute takeout, add up way faster than you think. Before building a solid budget, you need to know exactly where your money is going.
Approachable step: Start by writing down every weekly purchase, or use a budgeting app to do the work for you. You might be shocked at how much you’re spending on non-essentials!
Step Two: Cutting Costs Without Feeling Tied
Saving money does not mean giving up everything you love; it’s about being smarter with your spending. Instead of cutting out all the fun, focus on trimming the expenses that don’t add value to your life.
Approachable step: Start by reviewing your subscriptions (do you really need three streaming services?), negotiating bills like your phone or internet plan, and swapping expensive habits for budget-friendly alternatives.
Love coffee? Me too! Make it at home instead of spending $5 a day at a café. Craving a night out? Host a girls’ night instead of dropping $50 on dinner and drinks. Small changes add up fast; before you know it, you’re saving money without feeling like you’re missing out.
Step Three: Building a Savings Habit (Even if you have nothing left over)
If you think you can’t save because there’s nothing left after bills, the trick is to flip the script and pay yourself first, even if it’s just a few dollars. Saving isn’t about having extra money but making it a habit.
Approachable step: Start small—set up an automatic transfer of $5 or $10 every payday into a separate savings account. You won’t even notice it’s gone, but over time, it adds up.
Another hack? Round up your purchases: if you spend $3.75, stash the extra $0.25 into savings. The goal isn’t to save massive amounts overnight but to build consistency.
Once saving becomes second nature, you can increase the amount. The best personal finance rules work for you, not against you, and this one ensures you’re always setting money aside—no matter how tight your budget is.
Step Four: Making Extra Money to Boost Your Budget
When your budget feels too tight, sometimes the best way to boost it is by earning more. Don’t worry—you don’t have to quit your day job to start making extra cash.
Approachable step: Consider increasing your skills in small ways: offer freelance services like writing, graphic design, or social media management, or pick up side gigs like dog walking or babysitting.
If you’re crafty, try selling handmade goods on Etsy or offering virtual tutoring. Even selling things you no longer need, like clothes, books, or electronics, can add some extra padding to your bank account.
The point is to get creative and find ways to boost your income, even if it’s just a few hours a week. These side hustles help you reach your savings goals faster, giving you more room in your budget while sticking to personal finance rules that work for your lifestyle.
Final Thoughts: Your Money, Your Rules
At the end of the day, budgeting isn’t about being perfect; it’s about making your money work for you on your terms. The beauty of personal finance rules is that you can adjust them to fit your life and goals, whether saving aggressively or allowing room for fun.
Remember, it’s your money, and with the right plan, you have the power to create the financial future you want.
This post was all about personal finance rules.
Did you enjoy reading this post? What’s one small change you’ve made to your budget that’s had a big impact on your savings? Share your tips below—I’d love to hear what’s working for you! Let me know in the comment below!
