Elizabeth Warren spending plan

50 Percent for Needs

Allot half of your net pay for needs. Needs include any expenses you cannot forgo
in a given month, including:
Rent or mortgage
Groceries
Minimum payments on credit cards
Auto loan payments

30 Percent for Wants

The 30-percent category might be the most surprising part of Warren’s budgeting
rule, as a significant portion of your income is allotted to nonessentials. Wants
include expenses such as:
Going out to dinner
Traveling
Concert tickets

20 Percent for Savings and Debt

Saving money and paying down debt — which so many personal finance experts
emphasize as a priority — takes the smallest portion of the 50-30-20 budget. The
20-percent category includes:

Emergency fund savings

Retirement savings
Extra payments toward debt