50/30/20 rule

I stopped reading about it when I saw Pocahontas came up with that term.

It's a good rule but for us the 30% on needs is a little high. We follow more of a 50/20/30. I include our extra payment on the mortgage in that 30% because it is essentially savings.

I am actually becoming over committed to savings. Company was acquired and the options to invest more (deferred comp + stock purchase plan) are just too good to pass up. I need to find ways to generate more income and cash flow. Would say I am 50/15/35

Depends on goals, financial independence was high on my list . If so, savings gets maxed and moved into the number one spot. The needs of housing, food, and transportation should be minimized and subservient to number one to avoid lifestyle creep. Only when these are in place and for entertainment purposes only should percentages be calculated.