Do you get frustrated trying to figure out how to organize a budget? You can set up and manage a budget in many ways. One of the most popular methods is called the 50/30/20 budget. Here is an overview of the 50/30/20 budget for singles.


The 50/30/20 Budget For Singles 


What Is The 50/30/20 Budget? 


The 50/3020 budget is a popular budgeting rule. The 50/30/20 budget allocates fifty percent of your income towards your needs, thirty percent towards your wants, and then the final twenty percent you save.


How Singles Can Use The 50/30/20 Budget


50% For Needs


The first fifty percent of your income goes towards your needs. Your needs are things that are required for you to live. Your needs will include rent, electricity, natural gas, water, maintenance costs, HOA fees, property taxes, and food. Some other expenses that may be classified as needs could be healthcare, depending on your age and health status. If you have any debt, paying that off as soon as possible would also go under the needs category.


30% For Wants


The second part of your budget, you allocate thirty percent of your income toward things you want. Wants could include buying new clothes, subscribing to a streaming service, going out to eat, or purchasing something you like. You can live without wants, but wants can make life more enjoyable.


20% You Save


The final twenty percent you save. You want to begin to put money each month into your savings account. This will allow you to start to build up savings to cover any emergencies that may come up or to save so you can make a big purchase. Common big purchases are buying a house or a car. You could eventually choose to invest some of your saved money into various investments.


4 Types Of Savings Accounts


There are four main savings accounts to be aware of when you begin to learn about money.


Basic Savings Account


When you open a checking account with your bank, you will likely have the option to choose to open a savings account as well. Investopedia explains that “a savings account is an interest-bearing account held at a bank or other financial institution.” These savings accounts typically pay you a low to modest interest rate so that you get a low rate of return to keep your money in the bank. There may be certain limitations to how much money or how many times you can withdraw your money each month from the bank. You will need to check with your bank to understand the bank’s terms when opening a savings account.


High-Interest Savings Account


Some banks will offer a high-interest savings account. This type of savings account will provide you with a higher interest rate than a standard savings account. Online banks will most often offer these types of accounts. You can research online to find which banks offer high-interest savings accounts and the ones with the highest interest rate.


Certificate Of Deposit (CD)


Another option is to put money into a certificate of deposit (CD) account. Investopedia explains that a “certificate of deposit (CD) is a savings product that earns interest on a lump sum for a fixed period of time… CDs usually have higher interest rates than savings accounts for an incentive for lost liquidity.” You can look around at different banks to compare their CD rates.


Money Market Account (MMA)


The fourth type of savings account is a money market account or a money market savings account, depending on your bank. Investopedia says the “term money market account (MMA) refers to an interest-bearing account at a bank or credit union… Most money market accounts pay a higher interest rate than regular (passbook savings accounts and often include check writing and debit card privileges.” An MMA account may be an option if you want an account that pays you a higher interest rate while letting you use a debit card to make purchases. A money market account combines a savings account and a checking account.


Once You Save Money, You Begin To Invest


Once you have saved enough money in a savings account, you can begin to find ways to invest it. Here are four ways how you can decide to invest your money once you have saved enough over time.


Precious Metals


You can put a certain percentage of your money into precious metals. You have two main options when investing in precious metals: stocks or physical. You will be holding the metals in paper forms via the stock market when you hold stocks. If you decide to buy physical gold or silver, you will use the metals to save money outside the fiat monetary system. Gold has been used throughout history to preserve wealth and pass it down through generations. Silver is often used more for bartering or buying goods and services. Silver may become more valuable since it is used in solar panels and electric cars.


Gold and silver are also commodities. Commodities, particularly gold and silver, have a tangible store of value. This is referred to as commodity money.




You could also decide to invest a certain percentage of your income into cryptocurrencies. The most well-known cryptocurrency is Bitcoin. There are also privacy coins that you can invest in if you are more privacy conscience. The most well-known privacy coin is Monero. As with anything, you must do your due diligence when deciding what cryptocurrency to invest in. There are meme coins, just as there are meme stocks. Cryptocurrencies provide a decentralized solution to the traditional fiat system.


Invest In The Stock Market


Another option is to invest in the stock market. The two main types of stocks you can buy in the stock market are value and growth stocks. Value stocks are companies that have a consistent long-term track record of doing well as companies. Value stocks will often pay you a dividend for holding shares in a company. Dividends are one way how you can begin to make passive income.


Growth stocks are another option. Wallstreet Mojo defines growth stocks as “stocks of a company’s shares with a high price-to-earnings ratio but yield capital gains in the long term for an investor, higher than the market average. Such stocks reflect those companies in a portfolio that generate higher sales and earnings for its investors but do not pay dividends.” In short, growth stocks have the potential to give you a higher return on your investment compared to value stocks, but you have a higher risk that a company may not perform well to beat the market average. You must also sell the stock at a higher position in the market than when you purchased it.



Start An Online Business


Your final option is to use the money you have saved to start an online business. A business will give you the highest return on investment, but it also has the most risk compared to the previous options. Today, the cost of starting a business is drastically lower due to the Internet. You only need to be able to start a website. You can then find creative ways to make money by selling products and services to making money from advertisements and affiliate programs. Your only limit is your imagination.




The 50/30/20 budget is an easy starting place for singles to start who want to begin to follow a budget. After you have saved enough money, you can then begin saving money in different savings accounts. You can later start to invest in building up your net worth and preserve the capital you have built over time.

Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
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James Bollen is the Founder and President of Secure Single. He is an entrepreneur and a content creator with the goal of helping all different types of singles to learn to thrive as a single person.
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