If you can't forgo a payment such as a minimum payment on a credit card, it can be considered a "need," according to the Warren and Tyagi. Why? Because your credit score will be negatively impacted if you don't pay the minimum. By the same token, if the minimum payment required is ษ and you regularly pay 贄 a month to keep a manageable balance, that additional ๛ isn't a need.
Step Four: Spend 20 Percent on Savings and Debt Repayments. Now about the extra ๛ you pay on that credit card each month. That's neither a want nor a need. It's the ൜" in the 50ቺተ rule. It's in a class all its own. You should spend at least 20 percent of your after_tax income repaying debts and saving money in your emergency fund and your retirement accounts.