Budgeting in Your 20s: You’re Earning More, So Why Are You Still Broke?

Real talk: Budgeting isn’t just for broke college students.

You’re earning more now. You probably have a better job, a better apartment, maybe even better coffee, but somehow your money still vanishes before the month ends.

That’s not because you’re bad with money. It’s because earning more doesn’t automatically mean you’re managing more.

If you’ve been working for a couple years and still feel like you don’t have a system, this is your sign to build one.

What’s likely happening:

• You’ve never set a clear structure for your money

• You’re guessing month to month and hoping it works out

• You’re hitting “lifestyle creep” — spending more as you earn more

• You’re saving after spending, not before

A budget can fix that without turning you into someone who never has fun or eats out.

Step-by-step: Build a budget that fits your real adult life

Step 1: Get clear on your actual numbers

Pull up your past 2–3 months of bank and card activity.

Write down:

• How much you actually bring home each month (after taxes and deductions)

• How much you’re spending — and where

This isn’t about judgment. It’s about awareness.

You might find:

• You’re spending $300/month on subscriptions you forgot about

• You eat out 4x more than you thought

• You’re overspending because you haven’t told your money what to do

Step 2: Give your money a job before you spend it

This is where budgeting really works. Break your income into categories before the month starts. Every dollar needs a purpose. One simple way to set that up is the 50/30/20 rule: 50% needs, 30% wants, 20% savings/debt.

Want the fill breakdown (and variations for different lifestyles)? Read out article on the 50/30/20 Rule.

Step 3: Watch out for lifestyle creep

As you earn more, its tempting to upgrade everything, better restaurants, pricier clothes, fancier trips. None of these are “bad”, but if every single raise gets swallowed by upgrades, you’ll never actually feel richer.

Fix it: When your income goes up, split the raise. Enjoy part of it now but put the rest toward savings or debt. That way, your lifestyle grows without leaving your future behind.

Step 4: Automate your good decisions

Use your bank’s tools to:

• Set up auto-transfers into savings or investment accounts

• Split your paycheck (some to checking, some to savings)

• Pay off debts faster by automating extra payments

When saving happens first, not last, your money actually starts building.

Step 5: Use Equity Bank’s budgeting tool to make it simple

You don’t need to track every dollar manually, that’s what the tool is for.

Inside Equity Bank’s online banking platform:

• You can pull in all your accounts (even from other banks)

• It automatically categorizes your spending

• You set your own budget limits by category and it shows you how close you’re getting

But those limits don’t set themselves.

If you don’t know what’s realistic to spend on food, fun, or savings, I can help you set your parameters.

It takes about 30 minutes to set it up and it will save you from hundreds in random spending every month.

Step 6: Build a plan around your goals

At this point in your life, budgeting isn’t just about survival. It’s about direction. Ask yourself:

• Do I want to buy a house in 2–3 years?

• Do I want to take a big trip next year?

• Do I want to be debt-free before I turn 30?

Whatever the goal is, your budget is how you get there.

Quick mindset shifts that help:

• “I can afford it” ≠ “I should spend it”

• Saving doesn’t mean you’re being cheap. It means you’re being smart.

• Budgeting isn’t restrictive. It’s permission to spend without regret.

Monthly check-ins make it stick

Pick one day a month to review how it went:

• Did I stay within my limits?

• What categories felt too tight or too loose?

• Did anything unexpected come up?

Your budget should evolve as your income, lifestyle, and goals change.

Final Reminder

You’re not behind. You’re not bad at money.

You’re just ready to stop winging it and now, you’ve got a tool (and someone to help) to make it easier.