In All Your Worth (Free Press, 2005), Elizabeth Warren and Amelia Tyagi propose a budgeting method similar to Tobias’s, though they’re less tongue-in-cheek than he is. The authors argue that, in order to succeed financially, you need to balance three broad areas of your finances. They say to divide your monthly net income (that’s after-tax income — what you actually take home each paycheck) as follows:
