Jean Chatzky has blunt words on the 50/30/20 budget rule
Personal finance expert and author Jean Chatzky thinks some recalculations might be in order.
In 2006, Senator Elizabeth Warren of Massachusetts introduced the 50/30/20 rule. She shared the concept in her book All Your Worth: The Ultimate Lifetime Money Plan, and ever since, the 50/30/20 rule has been a gold standard for personal finance budgeting.
Because the average monthly Social Security payment of about $1,900 is not enough to fund most retirees' idea of a comfortable retirement, implementing a daily living plan to set aside a significant portion of one's income for long-term savings is important.
The 50/30/20 rule is not a law but a concept designed to help people who have difficulty sticking to a budget put their savings plans on autopilot.
