The balanced money formula

From the book "All Your Worth" by Elizabeth Warren & Amelia Warren Tyagi

How to allocate your after-tax incomes

Must-have - 50%

Wants - 30%

Savings - 20%

The lifetime savings plan

1. Save $1,000

2. Pay off debt

3. Build a 6-month security fund

4. Lifetime of wealth creation

a. Save for retirement

b. Pay off your house

c. Save for other dreams

This plan is very similar to Ramsey's baby steps