50/30/20 Budget Rule Method

ARREST YOUR DEBT AND BUILD YOUR FUTURE! %24 THE 50 30 20 BUDGET RULE All Your Worth Popularized in Senator Elizabeth Warren's book, All Your Worth: The Ultimate Lifetime Money Plan, the 50/30/20 rule provides a mathematical formula for dividing your earnings among needs, wants, and savings. THE ULTIMATE LIFETIME MONEY PLAN 20% Elizabeth Warren & Amelia Warren Tyagi Authors of The Two-Income Trop SAVINGS 50% 30% NEEDS WANTS NEEDS WANTS SAVINGS Rent Health Care Dining Out Vacations Emergency Fund IRA Contributions Investing in the Stock Market Groceries Utilities Recreation Clothing HOW TO SET UP A 50/30/20 BUDGET? The 50 30 20 budget is a way to manage your disposable and discretionary income after taxes. 50/30/20 Budget Total All Current Таxes Income Bills Disposable Income Discretionary Income STEP 1 .50 NEEDS %3D Your Income STEP 2 .30 WANTS Your Income STEP 3 .20 SAVINGS Your Income A GOOD RULE OF THUMB FOR HOW MUCH YOU SHOULD SAVE? According to the 50/30/20 budget rule, you should delegate 20% of after-tax income to savings. But since savings include several subcategories, how should you manage this amount? Retirement Emergency Fund Bank Savings Extra Debt Savings Account Repayment 10% 5% 5% II II J%24