Why Most People Struggle with Money (And How to Break Free)
Imagine this: You check your bank account at the end of the month and think…
“I work hard. I earn a decent salary. So why do I still feel broke?”
Sound familiar? If so, you’re not alone.
The truth is, most of us don’t have a spending problem—we have a system problem. Without a clear financial plan, money can be easily spent on impulse purchases, unexpected bills, and forgotten subscriptions.
But here’s the thing: If you don’t have a system to handle your money, you’ll always feel like you’re running in circles. You work hard, but without knowing exactly where your money is going, it slips through your fingers.
I get it. I’m on this journey, too. Elevate Habits is my way of sharing this growth process—both financially and personally. It’s not about complicated math or endless spreadsheets—it’s about organizing our lives better, understanding where our money goes, and making smarter choices every day. Small, incremental changes can completely transform your life, and I truly believe in the power of the 1% rule to make that happen.
Now, picture a different reality.
What if saving became effortless? What if you could enjoy spending—guilt-free—while still securing your financial future? What if wealth-building became automatic?
That’s precisely what the 50/30/20 Rule can do for you.
Today, I’ll show you how real people have used this simple framework to transform their financial lives—and how you can do the same. And remember, I’m right here with you, learning and growing along the way.
What Is the 50/30/20 Rule? (And Why It Works)
The 50/30/20 Rule, introduced by U.S. Senator Elizabeth Warren, is a proven framework for financial stability—without complicated spreadsheets, endless budgeting, or deprivation.
Here’s how it works:
✅ 50% of your income goes to Needs: Rent, utilities, groceries, transportation, insurance.
✅ 30% goes to Wants: Dining out, entertainment, vacations, hobbies.
✅ 20% goes to the Future: Savings, investments, debt payoff, retirement.
It’s simple, flexible, and life-changing—because instead of restricting every dollar, you align your money with your priorities.
The beauty of the 50/30/20 Rule is its simplicity. You don’t need to be an expert to make it work for you. With a little consistency, the results will speak for themselves.
But don’t just take my word for it. Let’s explore how this system has helped people achieve financial stability.
How Real People Transformed Their Finances with the 50/30/20 Rule
James: The Six-Figure Earner Who Still Felt Broke—Until This
James, a 35-year-old software engineer in Chicago, was making $120K per year—yet he was living paycheck to paycheck.
His mistake? Lifestyle inflation.
-
Expensive daily coffee runs.
-
Multiple unused subscriptions.
- Frequent impulse purchases.
When he discovered the 50/30/20 Rule, he made small but powerful changes:
- Reduced takeout spending.
-
-
Canceled unnecessary subscriptions.
-
Started automating 20% of his
-
paycheck to savings.
-
One year later? $50,000 in savings. He still enjoys life—just smarter.
Rachel: The Single Mom Who Paid Off $15K in Debt
Rachel, a single mom in Texas, felt trapped in a cycle of debt. Every month, she barely covered expenses—and credit cards filled the gap.
Her breakthrough? She started treating savings like rent—non-negotiable.
Every paycheck, she automated 20% into a savings account, even if it was just $50.
Results:
-
Month 1: Saved $200.
-
Month 3: She paid off her first credit card.
-
Month 6: Build a $3,000 emergency fund.
-
Year 2: Became completely debt-free.
Now, Rachel has peace of mind—and a growing investment portfolio.
These are real stories of ordinary people who applied the 50/30/20 Rule and changed their financial destiny.
Why a Planner Can Make All the Difference
Let’s be honest—tracking your spending isn’t always easy. I know from personal experience that it can be overwhelming, especially when you’re juggling work, life, and everything else on your plate.
That’s why planners are essential. They take the mental load off and help you track your progress in a clear, organized way. When your financial goals are written down, you’re more likely to stay committed and take consistent action.
Meet Emma, a freelancer who struggled with irregular income. She started using a planner to:
-
Track income and expenses.
-
Set weekly savings goals.
-
Stay on top of financial priorities.
Results? She built an emergency fund, paid off her student loans, and even planned a vacation—without stress.
Having a tool that keeps you on track—like this planner—makes all the difference. Trust me, it’s one of the best investments you can make in your future.
How to Apply the 50/30/20 Rule to Your Life (Without Being Overwhelmed)
Step 1: Find Your Numbers
Calculate your after-tax income and divide it into:
💰 50% Needs
💳 30% Wants
📈 20% Future
Example: If you earn $5,000/month →
-
$2,500 for Needs
-
$1,500 for Wants
-
$1,000 for the Future
Step 2: Make Small Adjustments (The 1% Rule)
This is where I want to remind you that it’s the small, daily changes that matter most. Instead of drastic cuts, ask: Where can I improve by just 1%?
-
Cut one unused subscription.
-
Order takeout one less time per week.
-
Increase savings by just $10 per week.
These tiny changes add up over time without feeling restrictive. Just like I’ve been doing, we don’t need to make huge sacrifices. The key is consistent, small steps.
Step 3: Automate Everything
Set up three bank accounts:
✅ Bills Account (50%) → Rent, utilities, groceries.
✅ Spending Account (30%) → Guilt-free fun.
✅ Savings/Investment Account (20%) → Future you.
Automation = No stress. No overthinking. Just consistent financial growth.
The Secret to Financial Freedom: Small, Consistent Changes
Most people fail at budgeting because they try to change too much, too fast.
But the secret? Small, consistent progress compounds into massive results.
-
Saving $5/day = $1,825/year.
-
Investing $200/month = over $50,000 in 10 years.
-
Cutting one unnecessary expense = Thousands freed up for wealth-building.
And I’m right here, learning and applying this myself every day. Small progress does lead to huge change.
Recommended Reading (Books That Can Change Your Financial Future)
If you want to dive deeper into mastering your finances, these books will give you a rock-solid foundation:
📘 The Simple Path to Wealth by JL Collins (Buy Here)
📙 I Will Teach You to Be Rich by Ramit Sethi (Buy Here)
📗 Atomic Habits by James Clear (Buy Here)
These books helped me understand financial growth and progress, and I truly believe they will help you, too.
Your 5-Minute Challenge: Take Action Now
✅ Check your last month’s spending.
✅ Find one area to improve by 1%.
✅ Set up an automatic transfer to savings.
This journey isn’t about quick fixes—it’s about consistent progress. Start tracking your budget today, make small changes, and see how those tiny actions lead to big results.
🔥 7-Day Challenge: Take Control of Your Finances with the 50/30/20 Rule 🔥
➡️ Day 1: Discover how much you earn after taxes.
➡️ Day 2: Categorize your expenses and see where your money is going.
➡️ Day 3: Identify at least one unnecessary expense to cut today.
➡️ Day 4: Set up automatic payments for your savings or investments.
➡️ Day 5: Set a realistic financial goal (e.g., save $500 in the next 3 months).
➡️ Day 6: Share your journey with a friend for added motivation.
➡️ Day 7: Review your week and celebrate your progress! 🎉
Join the Conversation!
As you begin your financial journey, I’d love to hear about your progress! Share your experience with the 50/30/20 Rule on Instagram or Pinterest, and let’s keep growing together. 🙌
Don’t forget to grab your Financial Planner today—it’s the tool that helped me take control of my finances and stay on track. You can do this. One small change at a time!
