The 50/30/20 budget rule is dead - here’s how to manage your money instead

When setting a budget, avoid outdated rules and find techniques that work today - (Getty/iStock)

The 50/30/20 budgeting method was popularised by US politician Elizabeth Warren, in her 2005 book All Your Worth: The Ultimate Lifetime Money Plan, and it remains a frequently recommended strategy for beginner budgeters 20 years later.

This method allocates 50 per cent of your post-tax earnings to essential spending (such as your rent or mortgage, bills, groceries and transport), 30 per cent to non-essentials, and 20 per cent to savings and investments.