Decision Making – Page 2 – mardihumphreys.com

Remember the Future

I discovered Chronesthesia while listening to Adam Grant’s WorkLife podcast. He interviewed Astronaut Scott Kelly who used it to deal with living at the International Space Station for 340 days. Grant described how it can help us cope with both living and working at home during COVID-19. Here is the article Grant wrote about Mr Kelly. It goes into more detail than the podcast episode. Chronesthesia was first proposed by Endel Tulving in 1985. It’s the concept of mental time travel. Now that we’ve lived in this pandemic over four months, it seems like a good time to acquire this skill.

What Is It?

Chronesthesia is the theory our brains are constantly aware of the past and future simultaneously. It combines episodic memory and mental time travel. Episodic memory is linked to time and provides data from our past. Mental time travel is the ability to use past events to conceptualize future events.

How Does It Work?

Like the Red Queen in Alice in Wonderland who remembered the future, Chronesthesia involves two sets of processes. One set pertains to space: the who, what, and where of an incident. (E.g., we remember eating lunch yesterday: what we ate, where we ate it, whom we were with) The other set of processes pertains to time: the when. (E.g., did we eat lunch, yesterday, today, or tomorrow?) Chronesthesia theorizes the second set of processes is subjective. It’s mental time unmeasured by clocks or calendars. Consequently, our brains can travel in it and use it to shape our futures.

What Can Happen When We Try It?

Cons:

Worry – Chronesthesia offers plenty of opportunity to dwell on the negative. For example, looking forward to traveling to Orlando, Florida for vacation, but worrying about catching COVID-19 because it’s a hot spot.

Frustration – Our visualization may not be flexible enough. For example, a client agreed to an in-person brainstorming session. We mentally rehearse for a week prior. We see ourselves at a whiteboard using a rainbow of dry erase markers. At the last minute, the client wants to switch to a teleconference.

Overthink – Pondering what could happen denies the pleasure of living in the moment. For example, fretting over the pipeline instead of celebrating a finished project.

Pros:

Adjusting – We can learn from the past and use that knowledge to change future behavior. For example, if we know a coworker gossiped about us last week, we’ll be very careful what we say in front of him today.

Marketing – Remembering the future is great for storytelling. For example, recall how your company helped a client. List the facts, their problem, and your solution. Then, think about the result. How did it make the client feel? Tell their story in a case study. Attach the positive emotions they felt to what you can do for future clients.

Goal Setting – Chronesthesia is a natural exercise for setting goals. For example, your career isn’t going the way you want. Travel back in your memory. Was there a project/client/offer you turned down that negatively altered your career’s trajectory? Think about why you turned it down. Imagine accepting that offer instead. What would the work be like? What skills/certifications/contacts would you need to succeed? Set S.M.A.R.T. goals to get them. Envision yourself achieving those goals.

What memories can you project into the future to help you keep moving your career forward during this pandemic? Please share in the comments section.

How Much Will You Pay for Peace of Mind?

My husband and I are on that step of the parenting journey where we have to explain realities to our daughter like 401k plans, insurance, and taxes. Insurance is a really tricky one. Why pay hundreds of dollars for something you may not need? Because life happens and we have to protect ourselves from financial ruin when it does. Here are a couple of questions we’ve answered.

What Even IS Insurance?

My grandmother used to say, “An ounce of prevention is worth a pound of cure.” Insurance is the ounce of prevention. We buy it before we need it, which is kind of backwards, right? We don’t buy dog food before we adopt a dog, but we do buy homeowners insurance before our house burns down because insurance companies won’t pay for a fire we’ve already had. It’s also weird in that insurance companies decide whether or not they want to insure us and how much they will charge us to do so. For example, when buying car insurance, if we have a crash on our record, the insurance company can charge us more than they charge someone who has never had an accident. Here is a comprehensive article about insurance.

What Kind of Insurance do I Really Need?

There are so many options. We can practically insure everything we own if we want to. Some insurance we are required to purchase. For example, it’s illegal to drive without car insurance. Some is optional; like pet insurance. So what are the essential types of insurance we should buy? It depends on our situations and who relies on our incomes. We work hard for our money and want to keep as much of it as possible. The following are common types of insurance and resources you can use to decide what’s best for your situation.

Health – Premiums, deductibles, and copays, oh my! There are so many variables associated with health insurance, there’s not enough room to go into them in this space. Here is a good article about them.

Dental – It depends on whether or not your employer provides it. Here is a good explanation.

Disability – According to the CDC, 61 million adults in America have a disability. You need long-term disability insurance. You can use your emergency fund for short term (lasting 3-6 months) disabilities, but here is a resource to help you decide.

Life – Should you choose term or whole life? Depends on what you want the insurance to pay for after you’re gone. Here is a good explanation.

Pet – We opt to use our emergency fund or credit card instead, but here is a resource for you.

Homeowners or Renters – Covers property damage (e.g., you get robbed) and liability (e.g., someone gets hurt on your property). Here is a resource for homeowners, and here is one for renters.

Flood – In most cases, yes. Neither homeowners nor renters insurance cover flooding. Here is an article about it.

Auto – It’s the law. Here is an article to help you decide what type is best for you.

Umbrella – Are you at risk of getting sued? Then yes. More details here.

Long-term Care – Probably not. Here is an explanation.

Identity Theft – Probably not. Here is why.

Have you had a circumstance where you were really glad you were insured? Please share about it in the comments section.

Meeting Manners

Photo by August de Richelieu from Pexels

Finding and maintaining business relationships is so important it has its own word: networking. Pre-COVID-19, the default technique was in person, in a group, with snacks. Meeting people powers business. We get together to build trust, show respect, demonstrate commitment, and form long term relationships. When we connected with someone, we’d further the conversation at a later date, either at one of our offices or restaurant.

When instructed to shelter at home, we immediately virtualized it, but now we’re dipping our toes back into the networking and 1:1 meeting ponds. It’s not unusual to run from a teleconference in my home office to a 1:1 at a coffee shop.

This transition is exhausting, but it helps when I remember guidelines for COVID-19 change daily for the entire world. We can’t realistically absorb all the available information, and no one has all the answers. We can have patience, extend grace, and be prepared to pivot. For example, when setting an appointment we acknowledge we’d rather meet in person, but offering a teleconference as a back up is currently the best practice.

We could just talk on the phone. (Remember when talking to someone was the only thing we did with phones?) I had a couple of 1:1 calls recently and they were refreshing! Eliminating the sense of sight allowed me to concentrate on the person’s voice and take notes. I didn’t have to wonder if I was using enough non-verbals to show I was paying attention. I had to remind myself to respond with verbal cues (e.g.,“uh-huh,” “yes,” “tell me more,” etc.) so the speaker would know I was listening. It was a great communication exercise.

When we meet face to face, it’s prudent to call the venue ahead and ask if they allow indoor seating yet. If they have outdoor seating, that’s even better, but requires the weather to cooperate. We should move our chairs six feet apart. If we purchase drinks or food, we should pay with our credit/debit card. We should wear a mask, carry hand sanitizer, not shake hands (and maybe comment on it; e.g., “I hope someone comes up with a substitution for handshaking soon.”) We should take our temperatures before leaving the house (and tell our 1:1s upon arrival). We should be prepared for cancellations as COVID-19 conditions daily change.

Now that we’ve had over three months experience with teleconferencing, here is something I’ve found useful. Begin the meeting at five minutes after the hour or half hour and end five minutes before the hour or half hour. Odds are the person meeting with me is coming from an earlier meeting, and/or has another one after ours. Giving them five minutes to transition demonstrates consideration for their schedule.

Respect is the key, both giving it and requesting it. When choosing whether to meet in person or virtually, it’s fair to say, “I’d rather teleconference. My family is taking social distancing very seriously.” We should also not be surprised to hear that sentence from the person we intend to meet. COVID-19 is turning into a marathon rather than a sprint. Minding our meeting manners is a small way we can help each other to the finish line.

Are the majority of your meetings still virtual? Please tell us about them in the comments section.

Stalled Boundary

Last week during a local weather forecast, a meteorologist described the stationary front hanging over us. She explained there were two air masses competing for dominance and until one got strong enough to replace the other, it would continue to rain. Doesn’t this sound like some of our work relationships?!

Two Masses Competing for Dominance

The word seems to imply an attempt to isolate ourselves, but boundaries are guidelines we communicate so others know how to treat us. We’re stating the behaviors we’ll tolerate and those we won’t. We’re setting expectations for the team. If we have well defined boundaries, it takes assuming out. “No” is a powerful word, and we need to get comfortable using it. We want to get along with our coworkers. We don’t want to seem rude, ill-mannered, or not a team player; but anyone with the attitude, “It never hurts to ask,” has been told no before. People are going to think what they want about us (positive or negative) no matter what we do, so let’s say no to things that make us exhausted, disturbed, or resentful.

Both Equally Strong

We can’t make anyone respect our boundaries. All we can control is how we respond when they’re crossed. When we’re pushed to defend our boundaries, it’s an opportunity to articulate why they exist. Some boundaries are negotiable and being questioned about them helps us refine them. For example, Coworker: “Why didn’t you reply to the email I sent you yesterday?” Me: “Because I stop checking email at 7:00PM.” This encounter reminded me our boss sends emails at all hours. So I refined my boundary by setting up a rule in Outlook. When our boss emails me, Outlook sends me a text. A long justification of our boundaries isn’t necessary nor is it anyone’s business. If we offer too much explanation, we invite the encroacher to move it. Remember, turnabout is fair play. We should be mindful of our coworkers’ boundaries. How can we tell when we’ve crossed one if they won’t point it out? There may be visual social clues: heavy sighing, arm crossing, eyebrow raising. When I suspect I’ve crossed a boundary, I ask. “Do I sense a boundary? Oops, the line’s behind me. I crossed it again.”

Everyone Gets Rained On

We can’t afford to feel guilty about how our reasonable boundaries affect the peace of our team. Modeling calm, matter-of-fact boundary defense may be the best thing we can do for our team. When we hold a boundary, let’s observe our coworkers’ reactions. Are they inspired? Relieved? Annoyed? Scared? Their responses give us a major clue about the health of our teams’ communication. Do we need a culture shift? Is it time for one member to transfer to a different team? Let’s strive to foster an environment where coworkers feel safe to disagree and debate, but non-stop criticism doesn’t promote problem solving. Leaving the team or asking someone to leave is not a pleasant choice, but it’s important to remember the choice exists. We aren’t powerless.

What are some work boundaries you’ve had to defend? Please share them in the comments section.

Control is an Illusion

For many of us, it’s a long holiday weekend to celebrate Independence Day. But thanks to COVID-19, I don’t feel very independent. I walk out the door then stop to make sure I have my mask. Before setting an appointment for a one-on-one, I have to call coffee shops and ask if they allow indoor seating. To go to the office, or not to go to the office; that is the question. Maybe I should take some time between Hamilton viewings to reflect, reality check, remaster, and renew.

Reflect

Gratitude is my default setting for pulling out of rumination. I keep a gratitude journal and write in it as part of my morning routine. I record one thing I’m grateful for from the previous day. When I start down the rabbit hole of feeling sorry for myself, I pull out the gratitude journal to snap out of it. I habitually focus on my goal and ignore the journey I’m on to reach it. Achieving the goal is fabulous, but wisdom comes from what I do daily to accomplish it.

Reality Check

Have you seen a bunch of memes on your social media feeds that say the most useless purchase of 2019 was a 2020 planner? It’s funny because it’s true. The goals we set at the beginning of this year are mostly impractical now. Yet, we beat ourselves up for not being on track to reach them. For example, my company planned to grow our new division this year. We’re having difficulty getting traction and I blamed myself. So, I turned to my best networking friends for a reality check. I felt better when they validated business is slow for everyone. This prompted me to refocus my outreach. What are my clients’ biggest needs right now? Can I provide a resource for them even if it’s not my company? If I can help my community get through the pandemic, then they will still be around to talk business post COVID-19.

Remaster

Much like a rock band re-recording an old hit song to improve its quality, let’s revise our yearly goals. We can break them down into smaller goals to help us stay motivated. We can concentrate on short term goals. (E.g., ask ourselves, “What is one thing I can I do today?”) We can break our revised goals down into actionable steps and calendar them so we’re triggered to action. When contemplating a new goal, we should ask ourselves,“Is this reasonable during COVID-19?” We can track our efforts (you know I’ll use any excuse to start a spreadsheet) and review them after Q3. We can identify someone willing to be an accountability partner and check in with each other weekly for progress reports.

Renew

Surviving COVID-19 is a marathon. Small daily acts of self-care (take a walk, read an article, listen to a podcast) can be rewards for taking another step toward our goals. Setbacks feel more painful right now, but let’s hold on, keep trying, and support one another.

How are you reflecting on the first half of 2020 and preparing for the second? Please share your ideas in the comments section.

Hiding in Plain Sight

Like Donna Summer, we work hard for the money and we need to manage it. Otherwise, it will manage us. We want to get to a point in our financial lives where we can pay our credit card balances off every month, pay cash to replace a dead refrigerator, and take that spontaneous long weekend trip without feeling guilty about how much we spend on it. A budget is a useful tool for that. Here are some options. After choosing the right plan for us, we need to take into account expenses that may be hiding in plain sight.

Let’s begin by recalling the conspicuous items a budget should include (along with a few examples):

Food, clothing, and shelter for the entire family
Childcare
Utilities (electricity, gas, water, sewage, trash removal, recycling removal, cell phone (including data), internet, cable tv)
Transportation (gas, oil changes, car loan, repairs, insurance, registration, car wash, parking, tolls, roadside assistance, public transportation, ride-hailing)
Medical Copays for the entire family (office visits, dentist visits, prescriptions, dermatologist visits, eye exams, lab work, therapists, urgent care)
Minimum monthly debt payments (student loans, credit cards)
Savings both short term and long term (emergency fund, vacation, children’s college, retirement)

Whew! Okay. Breathe.

Now, here are some items that may not occur to us when we are budgeting, but should (along with a few examples):

Haircuts for the entire family
Pets (grooming, veterinarian visits, medication, accessories (leashes, waste bags, cat litter, sweaters), food, boarding, toys)
Subscriptions (Netflix, Box subscriptions, Spotify, Playstation Plus, Amazon Prime)
Self-care
Property taxes
HOA fees
Makeup
School (supplies, pictures, private school uniforms, sports (including uniforms, participation fees, and equipment), band (including uniforms, participation fees, and instruments), teacher gifts, fundraisers, field trips, enrollment fees)
Lawn care (mowing, weed killing, landscaping, pest control)
Coffee and/or Fast Food and/or happy hour
Out-of-town guests (if they are staying with you, you are using more water, electricity, food, transportation, entertainment)
Physical fitness (home equipment (weights, treadmill, stationary bike) memberships to gym, yoga studio, classes)
Bank account fees (overdrafts, transfers, low account balances) if this is a significant expense for you, you might consider taking your banking to a credit union
Gifts (holidays, birthdays, anniversaries, graduations, Mother’s Day, Father’s Day)
Dues (union, fraternity/sorority, professional organizations, licenses, certifications, continuing education credits)
Charitable contributions
Software/Apps

How much we spend on these items is very personal. We also have to take our spouse’s needs, wants, and opinions into consideration. No one wants to feel financially deprived. On the other hand, no one wants to lie awake at night worrying about how we’re going to pay the bills, either. This shutting down of the economy has gone on so long that we are now in the second wave of layoffs. Some companies who managed to avoid furloughing workers, now have to ask their employees to take pay cuts or be laid off or both. When so many have lost their jobs, and those who didn’t feel overworked from home, (or tense on the front lines) forgotten budget expenses are unpleasant surprises.

Are there items that should be on this list that I missed? Please share them in the comments section.

It’s Alright to be Wrong

Father’s Day has me thinking about how patient my dad was.

There was the time I:

woke the whole house by climbing up in the attic and walking on the creaky floor over my parents’ bedroom early one morning
overcorrected a turn and drove into a yard at the top of a hill while learning to drive
flushed an item down the toilet and clogged the septic tank

These mistakes were explained to me (usually) calmly and corrections were requested (usually) just as calmly. He made me feel like I made a mistake, not like I was a mistake. There’s a big difference and it’s easy to miscommunicate. He made sure I knew my imperfections didn’t stop him from loving me. How often do we beat ourselves up because we feel like we failed? Three instances occur to me.

Failed Goals

When setbacks happen at work, it helps to remember our past successes. (If you don’t keep a success list for performance reviews, start. Now.) After reassuring ourselves, let’s reframe. This isn’t a failure, it’s an experiment. Was it a S.M.A.R.T. goal? Can we extend the deadline? Do we need additional resources to reach it? What if we tweak the process? We can analyze the data, then make a decision.

Failed Expectations

I registered to attend a free webinar given by a colleague. It was his second one. For the first one, he requested my help cohosting and I assumed (you know what assuming does) he’d want help again. Then I discovered a meeting scheduled for the same time that I’d rather attend because I’d have an opportunity to invite those participants to a webinar I was presenting the following week. I was disappointed I couldn’t attend the meeting. Then, I thought. “Why can’t I?”

The angel on one shoulder argued with the devil on my other shoulder:

Angel: Because you made a commitment.

Devil: They’ll be another webinar next quarter. Cancel the registration.

Angel: Your colleague will want your help again.

Devil: He hasn’t asked for it.

Angel: But you always put others’ interests ahead of your own.

THAT did it. I decided to attend the meeting instead of the webinar and if people think less of me for choosing what’s best for me, so be it.

Failed First Try

The team shot down my first idea for the website refresh in the project meeting this week. Does that mean I shouldn’t suggest another one next week? Is everyone judging me? Should I give up trying to be creative because I’m obviously embarrassing myself? Truth: my team probably forgot about my idea as soon as they left the Zoom room. I can’t remember what Joe’s big-SEO-lead-magnet-idea-that-tanked at last week’s meeting was. No one is holding our imperfections against us; except us. Let’s throw out our fixed mindsets and adopt growth mindsets. What exactly was it about my idea the team didn’t like? Was there a kernel of the idea they did like? Can I cultivate it and bring a revised idea to next week’s meeting? Struggling reminds us we’re stretching. Let’s not allow our mistakes to define us.

What flavor of imperfection is bugging you this week? Please share in the comments section.

Performance vs Potential

In America, 49.6% of the workforce is female, but less than 5% of Fortune 500 companies’ CEOs are female. I found several variables contributing to this confusing proportion. Since this is an election year and we’ve seen glaring examples of performance vs. potential, let’s focus on that variable for this discussion. A Presidential campaign is a job interview. During the democratic campaigns, the female candidates highlighted their resumes (what they did) while the male candidates promoted their plans (what they intend to do); evidence that women are judged on past performance and men are judged on potential. How does this societal inclination to evaluate a gender show up in the workforce?

This study on hiring reveals when the past performances of female and male candidates were equal, the female candidates were held to a higher standard. Unconscious bias lessened the women’s leadership potential in the hiring team’s opinion. These negative labels pervade the workforce. They’re exhausting to fight and often invisible. Let’s say Jane and Joe have the same position, the same resume, and are up for the same promotion. If Joe receives it, Jane probably won’t ask her boss if he chose Joe because he thinks Joe has more potential than she does. Instead, Jane will probably feel like she doesn’t belong at her company and look for a more welcoming environment. We have to realize unconscious bias is someone else’s opinion of us; not the truth, and have the endurance to battle it day after day. But, who has the energy to constantly validate her ideas to upper management while simultaneously doing the job?

Traditionally, when a project succeeds, a female leader shares credit with her team and a male leader assumes the credit for himself. Diluting her contribution, the female leader is easily overlooked for bigger projects. A man claiming credit gets leadership roles because no one asked how the project got done. They only saw who claimed credit for getting it done. The performance review process is a minefield of subjectivity and unconscious bias. One answer is to make the evaluation more about whether last year’s performance goals were met (this is typically how a male is evaluated), not how hard the employee had to work to meet them (this is typically how a female is evaluated). This challenges HR to rework the process using a filter of diversity and inclusion, which may require both training and a review committee. When women have to keep proving competency over and over, this slows down our advancement. How can we excel at past performance if we’re denied opportunities to perform?

Speaking of HR, in this poll of women working in the IT industry, 63% of them said the hiring process in the market is biased against female IT applicants. When women are hired, we start dropping out of the advancement track around middle management for obvious reasons: no women in next-level positions in whose footsteps we can follow, no access to casual networks (the old boys’ club), and lack of mentors (male or female) in upper management. But there’s also a not-so-obvious reason: a culture of embedded mindsets and entrenched beliefs. (E.g., men make better leaders because they’re more analytical and less emotional than women.) How much talent is wasted because of these barriers?

As usual, I have more questions than answers. If you have answers, please share your experience in the comments section.

How Did We Get Here?

For the last two (plus) months, COVID-19 has thrust circumstances on us: our jobs are harder (or gone), household chores multiplied, the kids’ online school had to be supervised, loss of autonomy, using technology to stay in touch with those we aren’t supposed to physically touch, etc. I’m sure your list is different and longer. I’ve awakened every day wondering, “What fresh hell can this be?” George Floyd’s death was a horrifying answer. Now that I’m awake, it’s time to stop and think about what I can do to make a positive difference; especially in the workforce. We were inundated by information last week. This is simplistic (Look, Listen, Learn), but I’ve got to begin my education in systemic racism somewhere.

Look

When it comes to work, I’m task oriented. I want to get through the Zoom, email, or report and get back to the work ASAP. I don’t often stop to acknowledge what’s going on outside the office even when it’s a protest. I don’t talk about how what I experience outside of work affects my ability to work. But systemic racism exponentially affects society’s ability to get anything done. How can our team do our best work if a coworker’s opinion gets discounted because of the color of her skin? Here is a good article on ways we can support our Black coworkers. Here’s a good article on what not to say.

Listen

It’s no longer enough to be non-racist. It’s time to be anti-racist; especially if we are in leadership positions. Here is a good article with practical suggestions. We must initiate the difficult conversations. We have to listen, particularly when it’s painful. Treating others the way we want to be treated isn’t enough, we must seek to understand. We have to make sure our teams know they are seen, heard, and we have their backs. We need to get comfortable with being uncomfortable. The truth will hurt, but we could have a change of heart if we would only change our minds. We have to use our vote to demand accountability from our elected officials.

Learn

I don’t know what I don’t know, so research is my first instinct. Because racism can come in the form of being dismissed, (“What did he do to draw the attention of the police?”) I thought racism was like sexual harassment. I felt like, on a shallow level, I could empathize. But it’s not like sexual harassment, is it? For example, I’m not afraid of a police officer stopping me on my way to the office because I’m female. How did we get so messed up? Trevor Noah gives a good summation.

I apologize for my ignorance. I’ve got a lot to learn and maybe even more to unlearn. I hope you’ll be patient with me. When I’m quietly standing beside you, it’s not because I won’t defend you; it’s because I want to amplify your voice.

If you have trusted resources for learning about systemic racism, please share them in the comments section.

Ruling Your Budget

One of the bright spots in this Coronapocalypse is our daughter FaceTiming my husband and me more than usual. One conversation turned to people we knew who’d lost their jobs because of the pandemic and this lead to a discussion of money. She had big questions: Was our savings still intact? Should she keep investing in her 401(k)? If so, how much? How much money does a car cost? Budgeting is very personal. It can also be confusing, tedious, and overwhelming. My husband and I use an 80/10/10 rule (live on 80% of our income, save 10%, give 10%), but there are a ton of theories out there.

Before deciding on which plan was right for us, we needed to know what our income is and what our expenses are. I’ve never met a spreadsheet I didn’t like, so I populated one with all of our expenses. Since we mostly pay with a credit or debit card, they were easy to find; especially the monthly bills. I had to search the record for an entire year because there are expenses we pay annually (e.g., renter’s insurance), and those we pay twice a year (e.g., car insurance). The expenses we paid in cash (e.g., parking), I had to estimate. Then I categorized our expenses according to need (e.g., the utilities are a necessary expense, the Disney+ subscription is not). Having access to this big picture is important because every budgeting theory I’ve researched has a savings component. We usually have to divert money from non-essential expenses in order to save it. Budgeting rules are expressed in percentages instead of dollars so we can scale them as our incomes fluctuate. I’m defining income as the amount on our paychecks, not the amount on our W-2s. After some research, here are the top three budgeting rules I found.

The 70/30 Rule

Invented by Jim Rohn, this plan suggests dividing personal net income into four buckets: 70% to pay living expenses; and 10% each going toward active investing (e.g., a savings account), passive investing (e.g., a 401(k)), and giving (charitable contributions). Pros: It’s easy to remember. Cons: It’s hard to do. Here is a good explanation.

The 70/20/10 Rule

This strategy proposes spending 70% of income on expenses, and setting aside 20% for savings (or debt), and 10% for giving. We should be realistic about paying off debt. I wouldn’t deprive myself of vacations for 30 years to pay off my mortgage, but I did take a part-time job (in addition to my full-time job) to pay off my car. Pros: This works if we have an emergency fund and little debt. Cons: 20% is a lot of income to save. Here is a good explanation.

The 50/20/30 Rule

This approach allocates 50% of income to paying expenses, 20% to debt, savings, or investments; and 30% to things we want (e.g., these can be anything from fast food every Friday to a Nintendo Switch). Pros: It’s a good plan for people new to budgeting. Cons: It’s hard to do when budgeting for a family. Here is a good explanation.

Do you follow a budgeting rule I didn’t highlight? Please share in the comments section.