As inflation strains an increased number of household budgets, many financial advisers are finding that the 60/30/10 budgeting method is a better fit for households than the long-standing 50/30/20 budgeting model.
The 50/30/20 rule, created by U.S. Senator Elizabeth Warren in her book All Your Worth: The Ultimate Lifetime Money Plan, has been a gold standard for budgeting since 2006. The method advises individuals to allocate 50% of their income towards necessities, 30% towards “wants” and 20% towards savings and paying down debt.
