Sunday, July 23, 2006

New Budget option (60% Solution)

Back in February, I mentioned The 60% Solution in a short article. Well, this is in the recently released US version of Money 2007.

It is called the 'Savings and Spending' budget in Money 2007.

If you don't know about this budgetary method, then basically it says that you should use 60% of your income on committed expenditure, and then divide up the rest into Irregular Expenses, Long-term saving/debt, retirement and 'fun' money.

I'll probably write some FAQ articles on the site in future, but it's nice to see now.

It's not mandatory though - you can continue to use an existing budget mechanism (advanced or essential) if you like. Also, it is version 1 of the budget. There are some things I would have liked to see in it (for example, if you don't allocate all spending, then assign the remainder, for example, to 'long term savings/debt' or 'fun money'.

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