Who Came Up With the 50 20 30 Rule?

What is the 50/20/30 rule anyway?

Alright, before we get into who invented it, let’s make sure we’re all talking about the same thing. The 50/20/30 rule (sometimes written as 50-30-20 or 50/30/20) is a simple budgeting framework:

• 50% of your income goes to needs (rent, utilities, groceries)

• 20% goes to savings and debt repayment

• 30% goes to wants (yeah, your Netflix, coffee runs, or that new phone)

It’s super popular among young adults, especially folks just starting to get serious about managing their finances. But... where did it actually come from?

The rule’s creator: Elizabeth Warren (yep, the Senator)

From policy expert to budget mentor

Believe it or not, the 50/20/30 rule was first introduced by Elizabeth Warren—long before she was a U.S. Senator. Back in 2005, she co-authored a book with her daughter, Amelia Warren Tyagi, titled "All Your Worth: The Ultimate Lifetime Money Plan."

In it, they laid out this simple budgeting rule to help everyday people avoid debt and start building long-term financial stability. The goal? Keep it practical and stress-free. No complicated spreadsheets, no shame. Just a rule you could actually follow.

Honestly, it was kind of revolutionary. While most financial advice at the time focused heavily on saving aggressively or cutting out "lattes" (eye roll), this approach acknowledged that people do need space to enjoy life too.

Why did it catch on?

It’s simple. Like, stupid simple.

In a world of confusing financial jargon—APR, ETFs, compound interest—this rule was like a breath of fresh air. You didn’t need a finance degree to understand it. You just needed to look at your income and divide it up.

Plus, it feels doable. You’re not being told to sacrifice everything fun to save. That 30% “wants” category? Yeah, that’s a game-changer for people who want a guilt-free night out or a last-minute weekend trip.

(Although, let’s be honest—when rent eats up 60% of your income in some cities, 50% for “needs” can feel like a joke.)

It’s flexible-ish

Another reason it stuck? You can tweak it. If you're in debt up to your eyeballs, maybe you throw more into savings. If you're earning well and your "needs" only take 40%, cool—you’ve got more to play with.

It’s not gospel. It’s a guide.

Criticism: Not perfect for everyone

Okay, time for some real talk. As great as it sounds, the 50/20/30 rule doesn’t work everywhere or for everyone.

Cost of living? Kinda ruins the party.

Try sticking to this rule in San Francisco, New York, or Paris. Good luck keeping your “needs” under 50% when rent alone devours your paycheck. In high-cost areas, this rule can feel wildly out of touch.

Life isn’t a neat pie chart

What if you're a single parent? Or dealing with medical bills? Or freelance with a fluctuating income? A fixed ratio system might not adapt well to the messiness of real life.

Even Warren herself probably didn’t mean for this to be a hard rule. It's more like a North Star, not a laser beam.

A little personal anecdote (because, why not?)

A couple years ago, I tried following the 50/20/30 method to get my finances in order. At first? It felt kinda rigid. My rent was too high, and I wasn’t saving nearly enough. But then I realized—hey, the point isn't perfection. It's awareness.

So I adjusted. Made it more like 55/15/30, and honestly? That small change helped me finally pay off a lingering credit card. Took me 8 months. Totally worth it.

Final thoughts: It’s a tool, not a rulebook

So yeah, Elizabeth Warren and her daughter are the ones who gave us this framework. It came from a place of wanting to make money stuff less scary for regular folks. And for that? Big respect.

But like any tool, it works best when you adjust it to fit your life. If 50/20/30 helps you sleep better at night, awesome. If not, tweak the numbers till they make sense for you.

End of the day, budgeting’s not about being perfect—it’s about being intentional.

Is 165 cm normal for a 15 year old?

The predicted height for a female, based on your parents heights, is 155 to 165cm. Most 15 year old girls are nearly done growing. I was too. It's a very normal height for a girl.

Is 160 cm too tall for a 12 year old?

How Tall Should a 12 Year Old Be? We can only speak to national average heights here in North America, whereby, a 12 year old girl would be between 137 cm to 162 cm tall (4-1/2 to 5-1/3 feet). A 12 year old boy should be between 137 cm to 160 cm tall (4-1/2 to 5-1/4 feet).

How tall is a average 15 year old?

Average Height to Weight for Teenage Boys - 13 to 20 Years

How to get taller at 18?

Staying physically active is even more essential from childhood to grow and improve overall health. But taking it up even in adulthood can help you add a few inches to your height. Strength-building exercises, yoga, jumping rope, and biking all can help to increase your flexibility and grow a few inches taller.

Is 5.7 a good height for a 15 year old boy?

Generally speaking, the average height for 15 year olds girls is 62.9 inches (or 159.7 cm). On the other hand, teen boys at the age of 15 have a much higher average height, which is 67.0 inches (or 170.1 cm).

Can you grow between 16 and 18?

Most girls stop growing taller by age 14 or 15. However, after their early teenage growth spurt, boys continue gaining height at a gradual pace until around 18. Note that some kids will stop growing earlier and others may keep growing a year or two more.

Can you grow 1 cm after 17?

Even with a healthy diet, most people's height won't increase after age 18 to 20. The graph below shows the rate of growth from birth to age 20. As you can see, the growth lines fall to zero between ages 18 and 20 ( 7 , 8 ). The reason why your height stops increasing is your bones, specifically your growth plates.