E-6 New Budget Plan

💰 Mark’s 50/30/20 Budget: Getting Back on Track After a Divorce

After his divorce last year, Mark, a 32-year-old Staff Sergeant (E-6) in the Army, knew he had to get serious about money. Between child support, his mortgage, and a few lingering credit card balances, he was ready to rebuild his financial foundation and start fresh.

He decided to use the 50/30/20 rule — a simple, flexible budgeting system that divides income into:

• 50% for Needs (essentials you can’t skip)

• 30% for Wants (things you enjoy but could cut if needed)

• 20% for Savings & Debt Repayment (to build your future)

📊 Mark’s Monthly Income Breakdown

Source Amount Base Pay (E-6)$4,500

BAH (Housing)$1,600

BAS (Food Allowance) $450

Total Monthly Income$6,550

That gives Mark about $6,550 per month to work with after taxes and deductions.

🧾 50/30/20 Plan in Action

Let’s break down Mark’s ideal budget — and where reality forced a few adjustments.

Category Target %Ideal Amount Actual Amount Notes

Needs (50%) 50% is $3,275 $3,650 - Mortgage went up after move; over target

Wants (30%) 30% is $1,965 $1,590 - Reduced due to housing costs

Savings/Debt (20%) 20% is $1,310 $1,310 - Stays consistent for retirement and debt

Even though Mark went over budget on “Needs” by $375, he refused to sacrifice his savings goals. Instead, he trimmed his “Wants” category — cutting out extra streaming services, eating out less, and holding off on a new gaming console.

🏠 When “Needs” Start Taking Over

Mark’s biggest challenge? His mortgage.
He purchased a small townhouse after his divorce — wanting stability for himself and his daughter during visitation weekends — but it stretched his budget.

Major Need Expenses Monthly Cost

Mortgage$2,000

Utilities$300

Car Payment$450

Insurance (Auto/Home/Life) $200

Groceries $400

Gas & Maintenance $300

Total Needs$3,650

💡 Tip: If your Needs category creeps past 50%, consider refinancing, downsizing, or adjusting non-essentials like upgraded cell plans or subscriptions bundled into that category.

🎮 Finding Balance in “Wants”

Mark had to get creative with his “Wants” spending.

Want Expenses Monthly Cost

Eating Out $200

Hobbies (Gym, Games, etc.)$150

Streaming & Entertainment $75

Vacation Fund $200

Miscellaneous Fun $200

Total Wants $1,590

He still makes room for fun — because financial success isn’t about deprivation. It’s about intentional choices.

💵 Staying Steady with “Savings & Debt”

Even with tight cash flow, Mark stays disciplined.

Savings/Debt Allocation Monthly Cost

TSP (Retirement) $600

Emergency Fund $300

Credit Card Paydown $250

Daughter’s Savings Account $160

Total$1,310

🔑 Takeaway: Prioritize your future, even when your present feels tight. Small, consistent saving builds security over time.

📈 Visualizing Mark’s Budget

Below is a pie chart showing Mark’s actual spending mix this month.
You’ll see how that slightly higher “Needs” slice squeezes his “Wants,” while savings stay steady.

Mark’s Monthly Budget Breakdown (50/30/20 Rule Adjusted for Real Life)

🟢 Needs (56%) – $3,650
🔵 Wants (24%) – $1,590
🟣 Savings (20%) – $1,310

🎯 Mark’s Next Step: Realignment

Mark’s short-term goal is to rebalance his budget over the next six months.
He plans to:

1. Refinance his mortgage or consider renting if reassigned.

2. Increase TSP contributions to 10% once debt is paid down.

3. Build a 3-month emergency fund before his next PCS.

He knows it’s not about perfection — it’s about progress.

✍️ Final Thoughts

Mark’s story reminds us that financial balance takes time and awareness.
Even when unexpected costs push you off-plan, the 50/30/20 rule helps guide your adjustments without losing sight of your long-term goals.

If your “Needs” category is creeping up, don’t panic — make small changes, track your progress, and stay consistent. Just like Mark, you’ll find your rhythm again.