Budget Couple Podcast

50/30/20 50% of income on essentials 30% of income on wants 20% of income on savings How this works for us: 39% of income on essentials 13% of income on wants 47% of income on savings Housing 30% of gross (before taxes) income - came from Brooke Amendment, capped rent for public housing at 25%, Reagan bumped it to 30% Many articles, sites now say it is outdated - doesn’t take into account student loans and retirement expectations of younger generations Not very flexible considering the cost of living in some places, other debt you may have, the fact that you probably don’t need to increase your house cost to maintain 30% as your income increases (we’re paying nowhere near 30%) Dave Ramsey - 25% of take-home pay, 15-year fixed rate One option is to consider what emergency fund you’re able to maintain - could it sustain you with your housing budget for 3-6 months? Car 20/4/10 rule - 20% down, 4 =year loan, 10% of gross income (include insurance) 20% of gross income on all car related expense (6% for us) Pri