Should high earners use percentage-based budget allocations?

Yes – for high earners, a savings-rate target is far more useful than category caps, because the question isn't whether you can afford things but whether you're converting income into wealth. Rules like 50/30/20 break down when needs are a small slice of a large income; a household earning $400,000 doesn't need 30% for wants. A better frame is to set an aggressive savings rate – many high earners target 30–50% of gross – and let the rest flex. Max tax-advantaged accounts first ($23,500 to a 401(k), plus backdoor Roth and HSA where eligible), then taxable investing for the overflow. The risk for high earners isn't running out mid-month; it's lifestyle creep silently capping the savings rate. Track the percentage you invest, not just your spending categories.