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How to Budget in Your 20s and 30s Without Feeling Restricted

April 01, 2025
Budgeting gets a bad reputation—it sounds like something that stops you from enjoying life. But in reality, a budget is just a plan for your money. It helps you spend smarter so you can enjoy life without stressing about bills or feeling guilty about your purchases.

Whether you’re just starting out in your 20s or leveling up in your 30s, a solid budget will help you stay in control of your finances. Here’s how to make budgeting work for you.


Step 1: Know Where Your Money Is Going

Before making a budget, track your spending for a month. You can use:
  • A budgeting app 
  • A spreadsheet
  • Pen and paper - whatever works!
Group your spending into categories like rent, groceries, eating out, subscriptions, and savings. This will help you spot where your money is going and where you might want to make changes.


Step 2: Pick a Budgeting Method That Works for You

There’s no one-size-fits-all budget. Pick a method that fits your lifestyle:

1. The 50/30/20 Rule (Great for Beginners)
  • 50% – Needs (rent, bills, groceries, transportation)
  • 30% – Wants (eating out, entertainment, shopping)
  • 20% – Savings & debt repayment
This is an easy way to balance spending, saving, and enjoying life.

2. The Zero-Based Budget (Every Dollar Has a Job)
With this method, you assign every dollar of your income to a specific category so that income – expenses = $0 at the end of the month. It forces you to be intentional with your spending.

3. The Pay-Yourself-First Method (For People Who Dislike Budgeting)
This works if you don’t want to track every expense. Simply automate savings and debt payments first, then spend whatever’s left however you want.


Step 3: Cut Costs Without Feeling Deprived

If your spending is higher than your income or you want to save more, look for small adjustments:
  • Cancel unused subscriptions (Do you really need every streaming service?)
  • Cut back on impulse spending (Try a 24-hour rule before buying non-essentials.)
  • Meal prep a few days a week to save on takeout.
  • Negotiate bills (Call your internet or phone provider—sometimes they’ll lower your rate.)
Even small changes can free up extra cash for savings or fun purchases.


Step 4: Automate & Adjust

Once your budget is set, make it easy on yourself:
  • Automate savings and bill payments so you don’t forget.
  • Use separate accounts for spending, bills, and savings to stay organized.
  • Review your budget monthly to make adjustments as your income or expenses change.


Final Thoughts: Budgeting = Freedom, Not Restrictions

A budget isn’t about limiting yourself—it’s about spending money intentionally so you can enjoy life without financial stress. Find a method that works for you, make small adjustments as needed, and enjoy the confidence of knowing exactly where your money is going.

Where will you start?
 
by Middlesex Savings Bank