Originally, the rule is 50/20/30 for needs, savings and wants. However, living in NYC, 50% of one’s income won’t be enough, unless that person is rich. Instead, I incorporated the 60/20/20 rule. 60% would go to needs. 20% goes to wants and the last 20% goes to savings. I believe if someone has no debts, they should be spending as much as they’re saving, too.

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