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Elizabeth Warren’s Game Changing Budget Rule Is As Easy As it Gets
By now, you should all know who Senator Elizabeth Warren is. The Massachusetts state senator was a law professor who worked her way up through the political system and eventually ran for president in 2020.
But what some don’t know is that Warren is also big on saving money and even wrote a book called All Your Worth: The Ultimate Lifetime Money Plan.
In her book, full of financial advice, she devised a rule for budgeting that she calls the 50/20/30 rule. In this piece, we’ll go over how you can utilize this advice for your daily money-saving goals.
The 50 (50% Needs)
Warren says that your “needs” are your essentials, the things you need to maintain your quality of life. These are things like bills, rent, food, insurance, health care, and utilities. In other words, that 50% is your “survival” fund.
If half of your income doesn’t cover the basic necessities, consider cutting down on some other things. Like, maybe…
The 30 (30% Wants)
Nothing in the 30% is absolutely essential, but it’s nice to have them. There’s no reason you shouldn’t have some money lying around for you to spend on things you like. Otherwise, what’s the point of trying to start a budget?