I have tried Mint. I have tried YNAB. I have tried a Google Sheet with seventeen color-coded categories that I abandoned after four days. Budgeting apps make me feel like I need an accounting degree. Every system I tried was too complicated and I’d quit within a week.

Then I found a method so stupidly simple that I’ve actually stuck with it for over a year. It’s called the 50/30/20 rule and it fits on a sticky note.

The 50/30/20 rule in one sentence

Take your after-tax income. 50% goes to needs. 30% goes to wants. 20% goes to savings or debt. That’s the entire system. No categories. No tracking every coffee purchase. Just three numbers.

Needs: rent, utilities, groceries, minimum debt payments, health insurance, basic transportation. If you’d be in trouble without it, it’s a need. Wants: eating out, streaming services, new clothes you don’t technically need, hobbies, travel. Savings/debt: anything above minimum payments on loans, emergency fund, retirement contributions, investing.

How to do the math in five minutes

Pull up your last month of bank transactions. Don’t categorize every single one — that’s the spreadsheet trap. Just add up three numbers: how much came in, how much went to obvious needs (rent, bills, groceries), and how much was everything else. That’s your starting point.

If your needs are more than 50% of your income — which is common if you live in an expensive city — adjust the ratios. 60/20/20 works too. The exact numbers matter less than having a framework. Before 50/30/20, I had no framework at all. I just spent money until the account got low and then panicked.

The one habit that made it stick

I don’t track every expense. I move the money into separate accounts the day I get paid. Checking account for needs, separate savings account for the 20%, and what’s left in checking is my “wants” money for the month. When the wants account runs low, I stop spending on wants. No app needed. The account balance is my budget.

This is sometimes called the “envelope method” but with bank accounts instead of paper envelopes. The key is that the money is physically separated so you can’t accidentally spend your savings on takeout.

• 50/30/20: 50% needs, 30% wants, 20% savings/debt
• Don’t track every coffee: Just review one month, get the big picture
• Separate accounts: Move money on payday — let account balances be your budget
• Adjust the ratios: 60/20/20 works if your cost of living is high