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Hey, everyone! The end of the week is here, which means it’s time for more budgeting talk! Exciting, right?

Also, I forgot to mention this last week, but the referral program is now live! (Check out the details at the bottom of the page.)

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TODAY ON REASONED REFLECTIONS:

• Articles 💰;

• Market Movers 📈;

• Reflection No. 26 - 50/30/20 budgets;

• Fun fact of the Reflection 🗓️;

• Quote of the Reflection 🧐.

ARTICLES 💰

Time for a bit of R&R

• When should you take social security?

  My Take - Dave has plenty of hot takes, and this might be another one. Conventional wisdom says waiting until full retirement age (or even later) is the best way to maximize your Social Security benefits. But let’s be honest—the only sure things in life are taxes and death. So, maybe something should be said for drawing benefits early and enjoying them while you can. As with most personal finance decisions, the “right” answer depends on your situation, health, and financial needs.

• Passive income strategies

  My Take - Making money without having to lift a finger? Sounds great. However, actual passive income is rare. There’s usually some level of effort involved. Dividend-paying stocks are about as close as you can get. Earn money just for holding shares? Sign me up!

• The one dollar rule

  My Take - Do you ever feel guilty after buying something you didn’t really need? I do. That’s where the $1 rule comes in! If you can amortize the cost per use or wear down to $1 or less, then go for it. I use this rule whenever I consider buying a new pair of Lululemon pants.

• Enjoy the ride?

  My Take - I shared a similar article last week, but it’s worth repeating—market volatility is tough to stomach. But here’s the thing: riding the roller coaster is way more fun than just watching it, especially after you’ve already paid for the ride. The same goes for investing. Staying in the market, even when it’s bumpy, is the key to long-term success. Buckle up and enjoy the ride!

• The worst things to spend money on according to Mr. Buffett

  My Take - Warren Buffett knows a thing or two about spending wisely and accumulating a mass fortune. Thankfully he’s willing to share his knowledge with us! Spending more on a quality item usually beats buying a cheap item you’ll have to replace more frequently. 

📈 MARKET MOVERS 📉

Data was pulled from MarketBeat as of 03/12/2025 based on the preceding 7 days. It includes U.S. NYSE and NASDAQ companies, covering all sectors, and focusing on large-cap stocks ($10b+ market cap).

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REFLECTION No. 26: 50/30/20

I - Issue: What’s a 50/30/20 budget? 

R - Rule: The 50/30/20 budget divides your after-tax income into three buckets:

• 50% for needs

• 30% for wants

• 20% for savings

Elizabeth Warren popularized this budgeting method, and it’s a simple way to allocate your income.

A - Analysis: If the thought of sorting your income into a dozen different categories makes you cringe, the 50/30/20 budget is for you. It keeps things simple and balances your spending between essentials, enjoyment, and future financial security.

50% - NEEDS

This is the non-negotiable part of your budget—the essentials that keep you housed, fed, and functioning. If your needs exceed 50% of your take-home pay, you may need to cut back or adjust your lifestyle to stay within the threshold.

Everyday “Needs” include:

• Housing (rent or mortgage)

• Car payments (if necessary for work)

• Loan payments (student loans, personal loans)

• Groceries

• Insurance (health, car, renters/homeowners)

• Utilities (electricity, water, gas, internet)

Essentially, anything you must have to survive falls into this category.

30% - WANTS

Here’s where things get fun! This portion of your budget is for the things that make life enjoyable but aren’t necessarily essential. Sure, I don’t need that latte, but I sure as heck want it.

Common “Wants” include:

• Clothes & shoes

• Entertainment like concerts, movies, dining out, happy hours, coffee

• Streaming services (yes, all 12 subscriptions you forgot you had)

• Vacations & travel

This category lets you enjoy life in the present while keeping your finances in check. 

20% - SAVINGS

This category goes beyond just saving for retirement. The 20% bucket includes long-term financial goals and emergency savings. 

Common “Savings” include:

• Emergency fund (3-6 months of expenses)

• Down payment for a house

• Retirement savings (401(k), Roth IRA)

• HSA contributions

• 529 account for college savings

When you lay it all out, 20% might not seem like enough (maybe that’s just me). If you can cut back on “wants” or even trim “needs,” you can funnel more money towards savings. Your future self will thank you!

C - Conclusion: The 50/30/20 budget is a great starting point for those new to budgeting. It’s simple, flexible, and easy to follow while ensuring you balance your current needs with long-term financial health. 

FUN FACT 🗓️

On this day in 1924, John “Jack” Mack, co-founder of Mack Trucks, died in a car crash. You can learn more here.

QUOTE OF THE REFLECTION 🧐