You can spend ũ값 a month on your "wants" based on that ū귔 you're bringing home each month. You might consider doing without a few things and shifting some of this money to your "needs" column if you're coming up short there_not necessarily indefinitely but until you can get your needs down to a more manageable level. Remember, you still need 20 percent left over so you can save and pay down your debts according to the 50ቺተ plan. Now you have 轜 left, that last 20 percent. You know what to do with it. Pay down on debt, save for an emergency, and plan for your future.
Harvard bankruptcy expert Elizabeth Warren_named by Time magazine as one of the 100 Most Influential People in the World_coined the ൺቺተ rule" for spending and saving with her daughter, Amelia Warren Tyagi. They co_authored a book in 2005: "All Your Worth: The Ultimate Lifetime Money Plan." So how does the 50ቺተ plan work? Here's how Warren and Tyagi recommend you organize your budget.