Should You Budget Your Money Using Percentages? by Kumiko of The Budget Mom on Zero-Based Budgeting

From Optimal Finance Daily - Financial Independence and Money Advice Optimal Living Daily | Diania Merriam

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Episode 3749:

Kumiko explains the appeal of percentage-based budgeting rules like 50/30/20, including their simplicity, then lays out where they break down, especially on lower incomes and when lifestyle inflation creeps in. She makes the case for zero-based budgeting instead, giving every dollar a job so your budget reflects your own priorities and money management goals.

Read along with the original article(s) here: https://www.thebudgetmom.com/should-you-budget-your-money-using-percentages/

Quotes to ponder:

"To me, it never makes sense to spend more just because you make more."

"There is a point where frugality no longer helps."

"The bottom line, if your budget is not forcing you to be more intentional with your money, it's not working."

Optimal Finance Daily is a daily personal finance podcast where we narrate the best articles on financial independence, investing, saving money, and money management, read to you by a professional narrator so you can grow your wealth a little more every day.

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