What is the 60% solution budget?

The 60% solution caps your committed living expenses – housing, food, bills, taxes, debt minimums, basically everything recurring – at about 60% of gross income. The remaining 40% is split into four 10% buckets: retirement savings, long-term savings (or sinking funds for irregular costs), short-term savings for fun, and fun money to spend guilt-free. The appeal is simplicity and a built-in 30% savings rate across the three savings buckets. It's a stretch for people in high-cost areas where housing alone eats much of the 60%, so treat the percentages as targets to grow into rather than hard rules on day one. If your committed costs run higher, see exactly where the money goes with the budget-analyzer at wealthserene.com/tools/budget-analyzer before adjusting.