Economist Olga Gogaladze suggests that the traditional 50/30/20 rule needs adaptation in large cities, recommending flexible strategies and prioritising major expense reviews to build savings effectively.
The familiar 50/30/20 budgeting rule is best treated as a rough guide rather than a universal formula, according to RIA Novosti’s reporting on comments from economist Olga Gogaladze. She said the approach, which divides income between essentials, wants and savings, can break down in large cities where basic costs alone may absorb 60% to 70% of a household budget.
Gogaladze, who founded the Pro.Finansy school, argued that people in high-cost environments often need more adaptable habits. One option is to “pay yourself first”, setting aside a fixed amount as soon as salary arrives rather than waiting to see what remains at the end of the month.
A second tactic is to begin with just 1% of income and increase that share gradually over 18 months to two years until savings reach a target range of 15% to 20%, she said. That approach echoes broader personal-finance guidance from several budgeting sites, which describe the 50/30/20 framework as a useful starting point but not a rigid rule, particularly for people facing high housing costs or irregular income.
The biggest gains, Gogaladze added, usually come not from trimming small everyday purchases but from reviewing major outgoings. That can mean renegotiating telecoms tariffs, cancelling unused insurance policies or refinancing consumer loans. If a household has no emergency buffer, she said the priority should be to build one in liquid, low-risk places such as savings accounts, short-term deposits or money-market funds.
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