All About the 50/20/30 Rule Suggested by Financial Influencer Known as the 'Frugal Spender'

Social media is flooded with financial advice at a time when people are trying to save more amidst rising costs and are exploring an array of investment options to secure financial stability for the future. Among the many voices helping people with financial insights, Brian aka 'frugal spender' is taking TikTok by storm with his down-to-earth advice on managing an average of $37,500. With more than 87,000 followers hanging on to his every money-saving tip, Brian has become the go-to person for budgeting wisdom.

Unveiling the 50/20/30 rule

In one of his viral videos, Brian, strolling through the park, breaks down the intricacies of budgeting with the 50/20/30 rule. Brian's budgeting philosophy kicks off with the essentials, claiming a whopping 50% of his take-home pay. With a playful smile, he explains, "50 percent of $2,500 is $1,250, so I'll be spending $1,280 on my mortgage, my car, my petrol, my food, everything I need to survive." This is the backbone of the frugal spender's financial game plan, emphasizing the importance of living within one's means. Brian adds a dose of reality, acknowledging that exceeding this limit means "living beyond my means." Yet, as some critics point out, not everyone finds this portion easy to stick to, with bills dominating a significant chunk of their income.

Moving on to the fun part, Brian allocates 30% of his monthly income to 'wants.' He breaks it down, "I'd allocate 30 per cent which is $750. This is towards things that I want, it's not necessities, it's the things I could cut out if I needed to. Things like gym memberships, subscriptions, TV, that sort of thing." It's a delightful reminder that treating oneself is essential, but it's equally important not to go overboard. However, not all viewers were on board with this advice. Some pointed out the rising interest rates affecting mortgage payments, making it challenging for many to fit their wants into a neat 30%.

The final piece of Brian's financial puzzle involves directing 20% of his earnings, which amounts to $750, towards 'short, medium, and long-term savings and investment goals.' With a nod to securing his financial future, Brian advocates for strategic planning.

The TikTok impact and reactions

Brian's video, breaking down the 50/20/30 rule, isn't just a stroll in the park, it's a viral sensation with over 1.2 million views and 2,500 comments. While many laud him for simplifying the complex world of personal finance, some critics express skepticism. In the comment section, one viewer points out the challenges of adhering to the rule, stating, "My bills are 70 per cent without food and internet." Brian, understanding the diverse financial situations his audience faces, acknowledges that the rule may not work for everyone struggling with necessities but stands firm for those at an average income and above. Addressing concerns, Brian keeps it real, saying, "the rule doesn't work if you are struggling with necessities, yes, but for average and above—it stands." It's a reminder that financial advice isn't one-size-fits-all, and Brian tailors his tips for those in the middle-income bracket and above.

As 'frugal spender' on TikTok, Brian has managed to turn financial advice into a relatable and engaging experience. While not everyone might find his budgeting rule a perfect fit for their circumstances, there's no denying the impact of his playful yet practical approach to money matters.

Brian's budgeting mantra isn't just about numbers; it's about weaving financial security into the fabric of everyday life. With his infectious enthusiasm and practical tips, he's proving that understanding your money doesn't have to be a daunting task it can be as simple as a stroll in the park.

For more financial insights, follow @frugal_spender.