Market Briefs Newsletter

Subscribe to our FREE finance & business newsletter to get financial news you can finally use.

Thanks for signing up to Market Briefs! Please check your email to confirm your subscription. If you don't see the email in an hour, check your spam and promotions folder. 

Be sure to read our Privacy Policy & Terms of Use.

  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Minority Mindset

Minority Mindset

Defy all odds.

  • Home
  • About
  • Blog
    • WEALTH
    • REAL ESTATE
    • STOCKS
    • SAVINGS
  • PRODUCTS
  • MONEY 101
  • GUAC TALK
Advertiser Disclosure

Our promise to you.

Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

See more from Finance

Simplify Your Budgeting Plan – 75/15/10 And 50/30/20 Explained

March 24, 2020 by Minority Mindset Team

minority mindset logo
Minority Mindset Team March 24, 2020

75/15/10 budget plan

Disclaimer

We only endorse products that we truly believe in. Some of the links below may earn us some extra guac at no additional cost to you. Please pass the chips & thank you for feeding our habit.

The majority of Americans lack basic financial education. This causes many Americans to spend more than they earn and fall into debt. Luckily though, building a budget is a quick way to avoid this trap.

A budget is a money system that gives every cent we earn a job within our financial plan. A person with no financial responsibilities should use the 50/30/20 plan to budget their money. However, someone with many financial obligations should try the 75/15/10 plan instead. 

The sad reality is that the majority of Americans don’t know what to do when they get their paychecks.

So, in this article, we’re going to show you why saving is not budgeting, what in fact is a budget and how to budget your money depending on your needs and age using the 75/15/10 and 50/30/20 methods.

PlatformPromotionsLink
Get a cash bonus of $30-$500 Sign Up
Get one free stock priced up to $225 Sign Up
Get up to $1,000 after funding a new accountSign Up
Get a free slice of stock worth up to $300Sign Up

Use Budgeting To Simplify Your Money

If you cringe when someone says the word, ‘budget,’ you’re not alone. Reportedly, 33% of Americans don’t have a budget and have no plans on making one.

If you’re part of this crowd, we don’t blame you. Cornerstone budgeting tips have always been:

  • Save every extra penny you have
  • Don’t spend any money on things you don’t need
  • Save until you retire

Now, these three things are wrong for a lot of different reasons, and we’ll break them all down later on.

But the biggest issue with all three? These are saving tips, not budgeting tips. And they’re not very good savings tips either.

By the way, we wrote a whole guide on how to save, which is different from budgeting. And if you’re falling behind in your savings game, you should definitely check it.

Saving every extra penny you have just doesn't make much financial sense. How can you know exactly how many extra pennies you have without a plan in place beforehand?

If you never spend money on things you want, then what is the point of making money in the first place? Horde it in a savings account until you die? Save it so someone else can spend it years from now?

We want you to actually use your hard-earned money while you’re in the best years of your life, not just for the 10 or 15 years after you retire.

But we also don’t want you to just wing-it when it comes to your money, either. 

These old “budgeting” strategies don’t offer any structure for you to actually use your money efficiently.

They only set you up for failure in the long run because you’re not developing good financial habits, you’re just throwing your money into a savings account in hopes that it will benefit you in the future.

This is why you need to learn how to budget your money before you can save it the right way.

Think of your finances like baking a sweet potato pie. It doesn’t just start out a pie, right?

Of course not! You’ve got to add water, sugar, and sweet potatoes, and even then, you’ve got to let it bake for a while, and then let it cool before it’s time to finally eat it! And don’t forget the whipped cream…

Featured Partners

$0 Minimum Investment

Invest Here

$500 Minimum Investment

Invest Here

Budgeting Plans For Simple Money Management

You’ve picked apart your finances and you know exactly how much you’re spending every single month. So how much should you set aside, and what exactly should you break your money into?

Well, we’ve created two budget plans (50/30/20 and 75/15/10) to help you organize your money in the most efficient way possible. Let’s talk about the two plans.

Simplify Budgeting – The 50/30/20 Rule

You may have heard of this type of budget planner before for your after-tax income, and it may have looked something like this:

  • 50% of your income goes towards your needs or expenses
  • 30% goes towards anything you may want, like that shiny Gucci belt
  • 20% of it is exclusively for saving

Sounds great until you remember one thing: We’re the Minority Mindset, and we don’t think like the majority of people! 

This plan neglects some key things like investing, which is part of using your money the right way.

In our adjusted 50/30/20 plan:

  • 50% of your after-tax income goes towards spending that includes needs and wants.
  • 30% of your money should be budgeted for investing, that way you have multiple streams of income which are important for your financial health and stability.
  • 20% is for saving, but we don’t want you to save forever, so once you have about 6 months' worth of expenses saved, move that money you would have saved into your investing budget.

This is the budget to follow if you’re young and do not have a lot of financial responsibilities.

Simplify Budgeting – The 75/15/10 Rule

If you’re older and have a lot of financial responsibilities, then you’ll want to follow our second budget plan which is the 75/15/10 plan, which looks something like this:

  • 75% of your income goes to expenses
  • 15% goes to investing
  • 10% goes to saving — that is, again, until you reach the 6-months worth of expenses threshold 

This budget planner works in a similar way to our 50/30/20 plan. It gives you the breathing room for your expenses and wants, while still allowing you some money to save and invest.

By sticking to one of these plans, you will begin using your money more efficiently and create long-term stability for your finances.

Simplify Your Budgeting To Simplify Your Money – Final Thoughts

Budgeting your money won’t make you rich overnight and it certainly won’t double your income in 30-days.

But budgeting your money does give you the opportunity to organize your finances, and then strategize your spending patterns so you can start developing good money habits and begin saving.

Wealth ManagerMinimum InvestmentLink
$0Sign Up
$100Sign Up
minority mindset logo

Written by Minority Mindset Team.

The Minority Mindset has nothing to do with the way you look, your ethnicity, or your skin color. It’s a mindset. #RethinkRich

Primary Sidebar

Advertiser Disclosure

Our promise to you.

Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

More From Finance

  • 13 Ways To Save Money When You're Broke
  • Buying Homeowners Insurance: Understanding The 6 Different Types Of Coverage
  • 5 Tips To Help You Lower Your Homeowners Insurance Costs
  • The 3 Steps To Buy Life Insurance For The First Time

Get Your FREE Guide To Building Wealth

& our daily newsletter

Thanks for signing up for our financial education emails! Check your email to confirm your subscription. If you don't see the email in an hour, check your spam and promotions folder.

Be sure to read our Privacy Policy & Terms of Use.

Featured Finance Posts

Understanding The Six Types Of Homeowners Insurance

Buying Homeowners Insurance: Understanding The 6 Different Types Of Coverage

Lower Your Homeowners Insurance

5 Tips To Help You Lower Your Homeowners Insurance Costs

7 Red Flags When Buying Life Insurance

The 3 Steps To Buy Life Insurance For The First Time

How To Find The Investment Account That's Right For You

How To Find The Right Investment Account In 3 Easy Steps

The Latest On Finance

mom with child thinking about her savings

13 Ways To Save Money When You're Broke

Top Ten Work-From-Home Jobs That Don’t Require A Degree

10 Work-From-Home Jobs That Don’t Require A Degree

Understanding Car Insurance - Full Coverage

Understanding Car Insurance - Full Coverage

crunching the numbers to refinance student loans

10 Ways To Pay Off Student Loan Debt Quickly

Life insurance for a family

How Does Life Insurance Work - Understanding Life Insurance

Footer

Keep Hustlin’

Company

  • About Us
  • Store

Help

  • Contact Us
  • Advertise
  • YouTube

Legal

  • Privacy Policy
  • GDPR Opt-Out
  • Comment Policy
  • Terms of Use

Follow us on:

Disclaimer: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements, and seek independent professional advice, before making any financial decisions. Our content is provided for informational purposes only, and no content that is provided or included in our products or services is intended for trading or investing purposes. We will not be liable for the accuracy, usefulness, or availability of any information transmitted and/or made available by way of our products or services, and shall not be responsible or liable for any trading and/or investment decisions made by you based on any such information. For a further understanding of this Disclaimer and use of our site, please see the information contained in our Terms of Use and Advertising Disclaimer.

Minority Mindset may earn a portion of sales from products that are purchased or recommended through our site as part of our Affiliate Partnership with retailers and brands.

Minority Mindset has partnered with CardRatings for our coverage of credit card products. Minority Mindset and CardRatings may receive a commission from card issuers.

© 2023 Minority Mindset, LLC. All Rights Reserved.
Website managed by Stallion Cognitive™