Yesterday, we discussed avoiding financial traps that can derail your goals.

If you missed it, [check out my guide here]. Today, we’re beginning a three-part series on the 60-20-20 rule, a simple budgeting framework to help you take charge of your finances. We’ll start with the foundation: the 60% for necessities—your essential living expenses.

Ideally, your necessities—rent, groceries, utilities, and transportation—should fit within 60% of your income. If they don’t, that’s okay; it’s about taking steps to get closer.

Making Necessities Work

Living within 60% of your income isn’t always easy, especially at the start. Focusing on these simple adjustments will provide some clarity:

• Housing: Consider more affordable options like roommates or downsizing.

• Food: Meal prep and bulk buying to save on grocery costs.

• Subscriptions and Bills: Cancel non-essentials and find better deals on utilities.

These changes might feel small, but they add up, helping you carve out space in your budget over time.

What If 60% Feels Impossible?

If your necessities exceed 60%, don’t stress.

Recognize it as a temporary challenge. Look for ways to lower costs gradually, and use any extra income to bridge the gap. The goal is progress, not perfection.

Why This Step Matters

Getting your essentials under control sets the stage for saving and investing.

This creates a stable financial foundation, making the next steps in the 60-20-20 rule easier to tackle. Mastering your necessities is the first step toward taking control of your finances. Start small, stay consistent, and set yourself up for lasting success.

Tomorrow, we’ll focus on the 20% for savings, diving into how to build a rainy-day fund that keeps you prepared for the unexpected. Stay tuned—this is where financial security starts!