09/17/2025
The 50/30/20 Rule — Budgeting for Mountain Folks
When you live in the mountains, money has a way of stretching and shrinking like an old pair of jeans. Some months feel comfortable, with room to breathe. Other months, the seams are about to burst. Between gas prices, grocery costs, and the unexpected—like when your truck needs a new alternator or the well pump decides to give out—keeping a handle on your finances can feel like trying to herd mountain lions. That’s where the 50/30/20 rule comes in.
Now, don’t let the numbers scare you off. This isn’t some fancy financial theory cooked up in a Silicon Valley office. It’s a simple way to keep your spending balanced so you’re not living paycheck to paycheck. Think of it as splitting your money into three buckets.
50% Needs: This is the big stuff you absolutely must pay to keep the lights on and life moving. Rent or mortgage, groceries, car payments, gas, insurance, and utilities go here. In mountain life, that might also include firewood deliveries, propane, or keeping up that trusty four-wheel drive. If it’s something you can’t skip without serious trouble, it’s a “need.”
30% Wants: Here’s where life gets sweeter. Wants are the extras—the dinner out in town, tickets to a show, or maybe a new kayak for the river. They make life joyful, but they aren’t necessary for survival. Many of us struggle here, because wants sneak into the “needs” bucket. Do you really need that daily latte (sorry Jenna), or is it a want in disguise? Sorting this out honestly is key.
20% Savings & Debt: This last piece often gets ignored, but it’s the most powerful. Saving for emergencies, retirement, or even your kid’s college falls here. Paying off credit card debt or student loans counts too. In the mountains, I like to call this your “woodpile fund”—you may not need it every day, but when the storm hits, you’ll sure be glad you stacked it high.
Now, how do you put it into action? Start with your monthly income. If you bring home $4,000 after taxes, that means $2,000 for needs, $1,200 for wants, and $800 for savings/debt. Simple, right? Of course, real life is messy. Maybe your rent is so high that needs eat up 60% of your budget. Or maybe you’ve got debt payments that squeeze the savings category. That’s okay. The 50/30/20 rule isn’t about perfection—it’s a compass, not a straightjacket.
If your needs are too high, look for ways to trim—cook at home instead of eating out, carpool, or call the utility company about energy-saving programs. If your wants are spilling over, track your spending for a month. Seeing where every dollar goes can be a wake-up call. And if saving feels impossible, start small. Even $20 a week adds up to over $1,000 in a year.
The beauty of 50/30/20 is that it balances living today with preparing for tomorrow. Too much focus on needs and you’ll feel deprived. Too much on wants and you’ll end up broke. Too little savings and you’re one flat tire away from disaster. But when all three buckets get their share, life feels steady—even in the unpredictable rhythm of mountain living.
So grab a notepad, pour yourself a cup of strong coffee, and take a good look at your budget. Are your buckets balanced? If not, start adjusting. Small shifts now will make a big difference down the road.
Mountain Mama’s wisdom: A steady budget is like a well-packed woodpile—it keeps you warm no matter what storms roll through.
