5 Money Rules People Say Make Them Feel More Behind, Not More Secure
You don’t have to be a rebel at heart to know that sometimes rules are meant to be broken. Sometimes, all you need is a glance at your bank account to realize it. If you’re already not where you want to be financially, some of the supposedly tried-and-true money rules can leave you feeling more insecure and even further behind financially.
To learn which money rules you might want to break for your own peace of mind — and maybe even for your wallet — MoneyLion turned to financial experts. We also reviewed conversations from everyday people on platforms like Reddit.
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1. When You Should Put Zero Credence in the 50/30/20 Rule
The 50/30/20 rule gained popularity largely because of its simplicity. You allocate 50% of your take-home pay to needs, 30% to wants and 20% to savings and paying off debt. Easy-peasy, right?
Eh, not exactly. For some people, that math just won’t work. Joe Braier, CEO and president of Lake Country Advisors, thinks he knows why. At its core, the rule oversimplifies the realities of budgeting when disposable income is limited.
“The 50/30/20 rule takes for granted that there will always be a certain amount of funds available for saving, for paying necessary bills and for spending on discretionary items,” he said. “As such, this rule is rarely practical and leaves people with feelings of discouragement because it does not take into account the financial difficulties many people encounter every day.”
2. A Careful Budget Alone Can’t Compensate for Lower Wages
Popular financial experts — many of whom, let’s be honest, haven’t struggled to make ends meet in years — swear your financial success lives and dies by your budget. Redditors in the r/povertyfinance subreddit aren’t so convinced.
While it’s true that having a budget is vital to staying on track financially, budgeting alone can’t compensate for the rising costs of everyday goods — especially if your income isn't keeping pace. One Redditor described a conundrum in which even the tightest budget can’t overcome a smaller salary:
“With rent [and] food, that's not enough to pay bills and still be able to set aside [money] for emergencies,” they said. “Food prices are going to go up and gas already jumped up.”
Redditors discussed needing to double their income, including taking on side hustles, just to make ends meet. You can’t budget your way out of what is ultimately a wage problem.
3. ‘Pay Yourself First’ — With What, Exactly?
Latoya Gordon, a business consultant and funding strategist, understands the logic behind the common advice to “pay yourself first” with every paycheck. But for people who are already stretching every dollar, she said the advice often raises a practical question: Pay yourself first with what, exactly?
“In theory, it teaches saving before spending. In real life, some people are choosing between groceries, gas, medicine and rent,” she said. “Telling someone to save first when there is no margin can make them feel defeated.”
So what is her suggestion? In her view, the better message is to create margin wherever you can and automate savings in ways that are doable — even if the amount is small to start.
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4. Expectations To Never Carry Credit Card Debt Are Unrealistic
Gordon is also skeptical of the expectation that financially responsible people never carry debt. After all, most people don’t want to be in debt, since they understand it comes with real costs. The issue, she said, isn’t ignorance. It’s cash flow.
And sometimes, life happens. An unexpected expense hits, and credit becomes the bridge.
“Sometimes people use credit to bridge emergencies or survive a hard season,” she said. “The better lesson is not ‘never carry debt’ as a moral rule. It is to understand the cost, have a payoff plan and avoid normalizing long-term balances.”
5. Like Rome, Your Emergency Fund Can’t Be Built in a Day
By now, you've likely heard that you’re "supposed" to have three to six months of expenses saved in an emergency fund — preferably in a high-yield savings account. That advice is widely cited by financial planners, but it can feel overwhelming if you’re starting from scratch.
George Mazzella, vice president of marketing at GreenFi, agrees that an emergency fund is essential, but he encourages people to rethink how they tackle the goal.
“Expecting people to build this in the short term is unrealistic. Three to six months is a strong long-term goal, but it’s not where you start,” he said. “A few hundred dollars can be the difference between staying afloat and falling further behind. Build from there.”
The Bottom Line
You don’t have to be a money rebel to question some common financial rules. But you don’t have to abandon those rules entirely, either. The key is adapting popular advice to fit your income, expenses and real-life constraints, rather than forcing yourself to follow rules that leave you feeling discouraged or behind.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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