Also, since you literally categorized and labeled your spending, it’s easy to start: use those color-coded categories to figure out what goes where in your 50/30/20 breakdown. But because 20 percent needs to be available for saving/investing, this means that all of your spending—red, yellow, and green—should add up to about 80 percent of your income (aka 50 percent + 30 percent). If it’s soaking up more than 80 percent, then it’s time to start tweaking your spending plan, starting with that middle 30 percent—the “wants,” aka green categories.
