Your Budget Is Broken (Here's How to Fix It)

Tired of budgeting advice that doesn’t stick? Rachel Cruze breaks down the actual playbook that works.

The Foundation First:

1. Drop $1K emergency fund ASAP — not for flex, for peace of mind
2. Kill your debt — yeah it sucks, but this comes before everything
3. Build 3-6 months buffer — then you can breathe
4. Max out retirement at 15% — but only after debt’s gone

Where Your Money Actually Goes:

• Housing: Cap at 25% of take-home (rent + mortgage + insurance + everything) • Transportation: Average household burns $2,148/year on gas, $975 on repairs • Healthcare: Americans spent ~$89/month on medical services in 2021 • Childcare: Ranges from $10.7K-$29.8K yearly per kid (yikes) • Charitable giving: 10% is the goal, but skip it if you’re still in debt mode

Cut These First:

Lifestyle/entertainment and personal spending are where most people hemorrhage money. Cruze’s take? Your financial security hits different than concert tickets ever will.

Pro move: Leave 5% miscellaneous wiggle room for surprises. Perfectionism kills budgets.

The real flex isn’t the budget itself — it’s actually sticking to it.