If you’ve read the book, “All Your Worth” by Elizabeth Warren, you’ve probably seen her “Balanced Money Formula.” You may have seen it even if you haven’t read the book because it has become the budget of choice for many media pundits and writers. For reference, the formula is as follows:
Needs = 50% of your income
Wants = 30% of your income
Savings = 20% of your income
The formula is designed to be a simple budgeting tool for those who don’t want to take the time to figure out individual budget categories, or who lack a sophisticated understanding of money and budgeting. All you have to do is keep three categories in mind and adhere to those...