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Question about the 50/30/20 rule everyone swears by
I followed the 50/30/20 budget for a solid year, putting 20% of my income straight into savings. My friend looked at my numbers and asked why I was saving so much while still carrying a $3,000 credit card balance at 24% interest. I felt like an idiot. I was so focused on hitting that savings percentage that I was actually losing money every month to interest charges. The win was realizing I needed to pay off that high interest debt first, even if it meant my savings rate dropped to 5% for a few months. It felt wrong to break the rule, but my net worth is better for it. Has anyone else found a popular budgeting method that just didn't work for their specific debt situation?
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