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There's a lot of money philosophy out there but thought this was worth starting a conversation about. It's called the 50/20/30 Budget Rule. Basically its a simple and straight forward way to do your monthly budgeting, by looking at your after-tax earnings and dividing up how to spend it. Break down is like this:
50% - Needs and obligations, like rent/mortgage, vehicle, food, bills
30% - Misc expenses and whatever you want but don't really need
20% - Savings and paying down/off debts
Generally speaking I like this division. It helps you look at how much you have to spend and make sure that you aren't living beyond your means. If your mortgage and car payment, for example exceeds 50% of your income post tax, that's likely going to be a problem down the road. So if you can keep it at or below 50%, you have a very respectable amount of breathing room, and that means you are perfectly living within your current means, obligation wise.
And 30% going to whatever you like is interesting because it allows you to blow off stem by spending some money on things you enjoy. It's interesting that its higher than the savings and debt part, by design.
And then 20% of your income going toward debt payments and savings. I like this because if you are debt-free, that's a large chunk for savings every month. But if you aren't its a sizable enough amount to put toward being debt-free.
The only thing I would say is if you have a very large amount of debt, so much so that its stopping you from doing a lot of other financial things, then I would put as much money as you possibly can toward it, even if it means sacrificing your 'spend on whatever you want' budget. At least until your debt is at a very manageable level.
What does everyone else think about this split? Do you follow something similar or do you think this is maybe too simplistic?