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What Is The 30 50 Rule  One hangup people have with budgets is that they have to do a line by line review of of all of their expenses and income For those new to budgets or people who are busy already it can seem overwhelming If that's you, proportional budgets may be the way to go And for a practical starting place, I'd suggest using the 50//30 budget A 50/30/ budget refers to a formula for dividing up your aftertax income to help reach financial goals Popularized in Senator Elizabeth Warren's book, All Your Worth The Ultimate Lifetime Money Plan, the 50/30/ rule provides a mathematical formula for dividing your earnings among needs, wants, and savings 50/20/30 budget