High Inflation Forces Budgeting Adjustments

The 50/30/20 budgeting method (50% on needs, 30% on wants, 20% savings) is no longer realistic for many people due to high inflation.

With housing costs rising, some people spend over 50% just on rent/mortgage. Other essential costs are also ballooning.

Experts suggest adjusting the method to 60/30/10 to account for increased expenses. Savings can be increased gradually over time.

It's okay to be flexible with percentages depending on your situation, as long as you're still saving something. Getting an employer 401(k) match is crucial.

Cutting back on "wants" spending categories can enable more savings. One woman saves $8,000 a year by reducing clothes, coffee, lunch, and dinner out costs.