Liz Pulliam Weston wrote an article detailing the "50/30/20" budget from a book by Harvard bankruptcy professor Elizabeth Warren and her daughter Amelia Warren Tyagi called "All Your Worth: The Ultimate Lifetime Money Plan." In a nutshell**, these authors posit that this budget will work for any income, helping you live your life while you build financial security -- and avoid devastating setbacks.
The idea is to spend 50% of your income on your "must-haves" and 30% on "wants", with the remaining 20% going to savings and debt repayment. You can try the interactive calculator here and see how your spending stacks up. I didn't do very well. How about you?
While poking around on Amazon, I noticed another book written by the mother/daughter duo called "The Two-Income Trap". In addition to the first book above, it appears to be another no-nonsense guide to fixing your finances so you can survive a setback -- such as the loss of income for a period of time.
Have you read either of these books? Do you have any more book suggestions or budgeting tips? If so, please leave a comment. I'd love to hear from you!
**Disclaimer: I have not read these books and don't necessarily endorse them. I just read ABOUT them and they seem interesting!
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