What is the 50-30-20 Budget Rule?
You may have heard of this budget, created by Elizabeth Warren and Amelia Warren in their book All Your Worth: The Ultimate Lifetime Money Plan. It is a very simple type of budget that cuts up your budget is a very specific way proven to help ensure financial stability. So what are the cuts exactly?
Fifty percent of your take-home pay towards fixed expenses and necessities like food, housing, utilities.
Thirty percent of your take-home can be spent on wants such as eating out, entertainment, “stuff”, etc.
The last twenty percent goes into retirement accounts, savings and emergency funds.