Are FI seekers supposed to follow the 50/30/20 budget guideline — or is it completely irrelevant when you’re pursuing financial independence? In this solo episode, Justin walks through five years of his own spending data to find out how closely his real-life budget aligned with this popular personal finance rule of thumb.

You’ll learn what the 50/30/20 rule was originally designed for, where it breaks down for people on the path to FI, and how your own needs, wants, and savings ratios might shift as you move closer to financial independence. Justin also shares his FI-friendly version of the guideline that better supports intentional spending, lifestyle design, and long-term financial freedom.

Whether you’re in your first year of the FI journey or optimizing for Coast FI, this episode will help you rethink your spending percentages, understand your true savings rate, and build a budgeting approach that matches your work-optional goals.

Key Takeaways:

• Why the traditional 50/30/20 budgeting rule often breaks down for FI seekers, early retirees, and anyone aiming for financial independence.
• How Justin’s actual 2020–2025 spending data compared to the guideline — including needs, wants, and savings percentages.
• The difference between budgeting for traditional retirement vs budgeting for financial independence or Coast FI.
• What your savings rate reveals about your FI timeline and why it matters more than a fixed budget ratio.
• How an FI-minded spending framework can help you design a flexible lifestyle, reduce money anxiety, and stay aligned with your long-term goals.
• A simple FI version of the 50/30/20 rule you can adapt to your income, values, and personal financial independence path.
• Why intentional spending beats rigid budgeting - and how knowing your own numbers can help you reach work optionality faster.

Other Episodes You’ll Love:

Smart Frugality: The Frugal Mindset That Actually Feels Good | E183 JC Rodriguez

How to Save Thousands on Groceries (Without Giving Anything Up) | E176 Bryan Suddith

Money Moves That Sound Smart…But Aren’t (Part 1) | E172

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