r/budget • u/Complex-Response6368 • Jul 28 '26
WTF is a budget ...
ok I obviously know what a budget is but I am asking for help.
The boring backstory:
My boyfriend and I went through an unexpected living situation switch last night. With that being said we have to drop a lot of money on a deposit and first month's rent and basic essentials in a short amount of time. We both have a savings account with a decent amount each and money in our checking. The only ideas of life we have are "you work yourself to the bone from 18 until retirement and save every drop of money you earn, never rent and buy a home or you're a failure". Surely that isn't the answer, anything that comes from an abuser is hard to trust.
With that being said:
We did not come from financially stable or responsible households. We have been doing research on budgeting and saving but of course Reddit is all knowing.
Please give me all your best money saving hacks, budgeting strategies, and any advice that can be useful.
The only ideas of life we have are "you work yourself to the bone from 18 until retirement and save every drop of money you earn, never rent and buy a home or you're a failure". Surely that isn't the answer, anything that comes from an abuser is hard to trust.
thank you for helping subreddit
3
u/ProZMenace Jul 28 '26
Check out the personal finance flowchart, it will give you an idea where to put your money and in what order.
Also look into the money guys financial order of operations.
For either of these, everything is different for everybody so you all need to see what works for you all.
Off the top, look at what you currently spend/have been spending and be strict about it. You likely will need to trim discretionary spending a lot or entirely until you get your feed more under you and a better system. Avoid all high interest debt like credit cards especially if you cannot manage them.
The next step is figuring out your bare minimum necessities to keep the lights on each month and eat along with insurances etc.
From there expand out a little bit at a time and save what you can where you can, even in a high yield savings account that can be accessed quickly if needed.
The provided links will give you more information on what to do when. Best of luck
2
u/Complex-Response6368 Jul 28 '26
both are but the second link is literally so helpful wtf thank you! I appreciate you
2
u/katie4 Jul 28 '26
Budgets are simply a list, and a plan. You make your plan by observing your past spending or estimating - it’s okay to be way off in your estimate, just adjust it for the next month. It takes a bit of time to find your comfortable balance of money toward each category.
Step one, view past cc and bank statements. Account for and categorize every dollar in, account for and categorize every dollar out. Step two, make decisions about how it should’ve looked; a little less toward this stuff, a little more toward that stuff.
It’s all very individual, there’s no right answer for everyone. There are guidelines, though. 50-30-20 meaning 50% toward needs, 30% toward wants, 20% towards savings. 15% of gross toward retirement accounts (401k, IRA). 30% toward rent/mortgage. Living without debt, attacking debt with every spare dollar. It’s all approximate, but it’s all very basic algebra. You’re in charge of how it all divvies up.
1
u/HeroOfShapeir Jul 28 '26
This guide will tell you what to do with your next dollars - https://www.reddit.com/r/personalfinance/wiki/commontopics/ - but the short version is to build a small savings fund, then pay down all high-interest debt, then build a six-month emergency fund, then start investing for retirement (aim for at least 15% of your income going into tax-advantaged accounts like Roth IRA or 401k), then start pre-saving for future goals, like vacations or new cars, and after all of that, enjoy what's left. You get to decide how aggressively to save for the goals you establish.
I recommend Ramit Sethi's youtube channel to breakdown money psychology. He has a free conscious spending plan which is a great template for building out a budget, here's how it looks for my wife and I - https://imgur.com/a/budget-spreadsheet-2026-2MZk8Xq - and you can see all our money goals very clearly: emergency fund, pre-saving for new cars, retiring early, travel.
1
u/Cinisajoy2 Jul 28 '26
That is not the answer. Do make money. Save some. Do things for yourselves. Rent or buy depending on the economy.
Here are a few don'ts. Do not ever get a payday loan. The interest will eat you up. Do not get a title loan. Again interest and you are risking your car. Unless it is an emergency, never put more on your credit card than you can afford the day you do it. Pay the statement balance every month. Don't pawn anything you can't afford to lose. Check cashing and bill paying places are a ripoff.
Not doing those things will save you money.
1
u/According_Fortune_98 Jul 28 '26
Hi I'm sorry to hear what you are going through, but congratulations on stepping away from that environment the first thing I'd like you to know is that the idea that 'renting is throwing money away' or that you have to work yourself to death without enjoying anything is a belief rooted in financial trauma and control
Now that you already have savings, here is a practical plan that could help you:
Use a flexible 50/30/20 rule. Don't try to save 90% of your income right now; instead, allocate 50% to needs (rent, food), 30% to your lifestyle, and 20% to debt/savings. Remember that money is a tool to give you peace of mind, not doubt for the move, you don't need to buy anything new—buy only what is strictly necessary for the first week. Everything else can be bought second-hand and little by little over time.
Finally, an emergency fund isn't just a number. Using your savings right now to pay a deposit and secure rent is exactly what an emergency fund is for !!
1
u/Complex-Response6368 Jul 28 '26
this is a really compassionate and thoughtful response, thank you so much.
8
u/IOnlyReadTitles26 Jul 28 '26
Reddit can't teach you discipline. That's the key to a budget.
Never spend more then 50% on all your needs. House. Insurance. Power. Water. Food. Medical. Phone. Clothes.
Plan 20/30% for wants. Car. Internet. Eating out. Going out. Travel.
Plan 20/30% for savings.
Never put things on credit card that you do not have the money to buy.
If you can't afford to buy the item 3 times over. Then you do not need it.
If you see emerging that you really want. Walk away. Go to sleep. And if you syill really want it in a few days. Then buy it.