50/30/20 budget

The study examined 99 U.S. cities based on the “50/30/20” budget – 50% of your salary for your needs (housing, groceries, transportation, etc.), 30% toward entertainment, hobbies, and 20% toward paying off debt, savings, and investing.

Thirty percent of income for entertainment and hobbies seems high for lower income families and individuals. Also my guess is a lot of lower income people aren’t saving and investing anywhere near 20%.

Maybe reverse the 30 and 20, 30 toward debts and investing, and 20 for entertainment and such. But, it depends on what they toss into that category. Sometimes, people would include cell phones and cable.