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Matt's Dad Says…

Author: Deane Biermeier

  • What Is the 50/30/20 Budgeting Rule—and Does It Really Work When You’re Broke?

    What Is the 50/30/20 Budgeting Rule—and Does It Really Work When You’re Broke?

    If you’ve ever typed “how to make a budget” into a search bar, chances are the 50/30/20 rule popped up.

    It’s a simple, clean-sounding system that breaks your take-home pay into three neat categories:
    50% for needs, 30% for wants, and 20% for savings or debt repayment.

    Sounds great, right?


    But here’s the truth: If you’re just starting out—or you’re buried under a mountain of debt—the 50/30/20 rule might not feel helpful at all. In fact, it might feel impossible.

    Let’s unpack what this rule actually means, when it makes sense to use it, and why it’s okay (even smart!) to adjust the percentages as your situation changes.

    The Basics of the 50/30/20 Budget Rule

    Here’s how it works:

    • 50% of your income goes toward needs—housing, groceries, insurance, utilities, minimum loan payments.
    • 30% is for wants—things like eating out, streaming subscriptions, hobbies, or anything non-essential.
    • 20% goes to savings or debt repayment—building an emergency fund, paying off credit cards, or contributing to retirement.

    It’s built to offer balance—cover your essentials, allow some fun, and still make progress toward financial goals. And for a lot of people, it’s a great starting point. But what if your situation doesn’t fit that mold?

    The 50/30/20 Rule Doesn’t Work for Everyone (and That’s Okay)

    Let’s be real: When you’re working multiple jobs, dodging overdraft fees, and avoiding that stack of unopened bills on the counter, 30% for wants might sound like a joke.

    In the early stages of your financial journey, especially when debt is high and income is stretched thin, your budget might look more like:

    • 70% needs
    • 10% wants
    • 20% debt and savings

    Or even:

    • 80% needs
    • 0% wants
    • 20% debt payoff

    And you know what? That’s not failure—that’s strategy.

    You’re not broken. You’re building.

    When you’re clawing your way out of debt, the goal isn’t balance—it’s survival with a plan. And once your income grows or your debt shrinks, you can start shifting the numbers.

    Needs vs. Wants: What’s the Difference?

    This is where it gets tricky.

    What’s a need for one person might be a want for someone else. But in budgeting terms, needs are the things that keep you alive and working. That includes:

    • Rent or mortgage
    • Basic groceries
    • Utilities (electric, water, gas)
    • Transportation to work
    • Insurance (health, auto)
    • Minimum debt payments

    Wants are anything non-essential—even if they feel essential in the moment:

    • Eating out or takeout
    • Streaming services
    • Gym memberships
    • Name-brand anything
    • Upgraded tech or convenience items

    A good test?

    If you could survive without it for a month (even if you’d grumble about it), it’s probably a want.

    But remember: You’re the boss of your budget.
    This isn’t about shame. It’s about getting clear.

    Adjusting the Rule to Fit Your Life

    There’s no rule that says your budget has to look like anyone else’s.

    You might try:

    • 60/20/20 if your rent is high
    • 70/10/20 when you’re attacking debt
    • 40/30/30 when you finally get a raise and want to save more

    That’s why we created a custom 50/30/20-style calculator just for you.


    It’s flexible. It’s easy. And it lets you adjust the categories to fit your actual life—not some idealized version of it.

    👉 Try the Flexible Paycheck Splitter Calculator

    You can stick with the classic split if it works for you—or you can tweak the percentages based on what your goals are right now.

    Your Budget Should Grow With You

    As you learn more about money—and start getting ahead instead of falling behind—your budget will evolve. That’s a good thing.

    What starts as a tool for survival becomes a plan for freedom.


    That’s why we’re building out a whole series to walk you through the basics.

    If you haven’t yet, check out our intro post, Financial Education for Beginners. It talks about what and who Matt’s Dad Says… is, and where we’re headed… with you. 

    Final Thoughts: Start Where You Are. Keep Going.

    Budgeting isn’t about perfection—it’s about paying attention.


    And if the 50/30/20 rule feels too far off from where you are right now, that’s not a sign to quit—it’s a sign to customize.

    Use whatever percentages help you:

    • Cover your essentials
    • Stay afloat
    • Make progress—even just a little

    And when your situation improves? Adjust again.
    That’s how you build a real budget—one that grows with you.

    Ready to try it your way?
    Use our Flexible 50/30/20 Paycheck Splitter Calculator to start building a budget that fits your life—not the other way around. It’s just a start, but we’re growing, too. More helpful tools

  • Welcome to Matt’s Dad Says…

    Welcome to Matt’s Dad Says…

    You know how some things just click one day? Maybe it’s something you’ve heard a dozen times—or a hundred—but it finally sinks in when you’re ready for it.

    That’s what this site is about.

    Matt’s Dad Says… is here to help real people figure out real money—without judgment, without shame, and without expecting you to have it all together already.

    If You’ve Ever Felt Behind, You’re in the Right Place

    Most of us didn’t learn how money really works when we were young. We were taught how to write checks (maybe), how to count change, or how to get a job. But the stuff that actually matters—like how to build a budget you can live with, what debt does to your peace of mind, or why “pay yourself first” is more than a bumper sticker—wasn’t part of the lesson plan.

    So, we learned the hard way.

    We fell behind on bills. We lived paycheck to paycheck. We borrowed from credit cards we didn’t understand, paid interest we didn’t notice, and made financial decisions that felt like survival… because they were.

    There’s no shame in that. Being broke isn’t a moral failing—it’s often just the result of not knowing what we didn’t know.

    Why Listen to Me?

    I’m not a millionaire or a celebrity financial guru. I’m a guy who spent too long living paycheck to paycheck, who made every money mistake in the book—and then turned it around.

    That journey led me to earn my Financial Educator Certificate from the University of Minnesota, where I learned how to teach personal finance in a way that’s clear, practical, and—most importantly—relevant to real life. I’ve also spent years as a professional writer and editor for financial publications, helping break down complex money topics for everyday readers.

    So when I talk about budgeting, debt, or saving strategies, I’m not just speaking from experience—I’m trained to teach this stuff. And I care about helping you understand it without the usual confusion, shame, or jargon.

    What I Wish I’d Learned Sooner (And What I’ll Share Here)

    This site exists because of one of those “aha” moments—a story I’ll tell in detail another day. But it starts with me giving advice to my son (over and over) and him finally hearing that same advice when someone else said it. That’s how it works sometimes. We’re not always ready to hear it until we are.

    So think of this blog as that “someone else.” Not your parent. Not a financial advisor in a suit. Just a person who learned the hard way and wants to make your journey easier if you’re ready to start.

    I’ll be sharing stories, tips, lessons, and tools that helped me stop feeling powerless about money. Some of it’s simple. Some of it’s hard. But all of it is honest.

    What’s Coming Next

    Over the next few weeks, you’ll see new blog posts about budgeting, debt, saving, and the small, powerful decisions that lead to big change. I’m also building a full online course that takes everything I’ve learned and walks you through it step-by-step.

    There’ll be stories. There’ll be tools. There might even be a dancing piggy bank or two. Because learning about money doesn’t have to feel dry or punishing.

    As we get started, here’s a peek at just one, very simple, paycheck splitter tool that you’ll be able to use to get started on your budgeting journey.

    We’re In This Together

    If you’ve ever felt like you’re “bad with money” or like you’re the only one who didn’t get the memo—welcome. You’re not alone. You’re not broken. And it’s not too late.

    Matt’s Dad Says… take the first step. Learn a little every day. And give yourself the grace to grow at your own pace.

    We’ll figure it out together.