Personal Finances: A Practical Guide to Balancing Your Family Budget


To achieve most of adult life goals, having money is essential. Maybe we long for the feeling of stability of having a home of our own, or we want to create a fund to fund our children’s college education, or we might want to take a trip around the world when the pandemic is over.

The difficult thing is learning to organize our household in such a way that we can save enough to achieve our goals in the medium and long term.

Some of the keys to keeping our personal finances in order lie in the hands of Elizabeth Warren, a woman who has taught housekeeping for years.

Before turning to politics, the Democratic Senator of Massachusetts and former presidential candidate practiced for years alongside a professorship at Harvard University as a bankruptcy attorney.

In the 2000s, Warren and her daughter Amelia Warren Tyagi, who is a financial advisor, wrote a book about the financial troubles of middle-class families, entitled The two income traps, and shortly afterwards they published a guide to financial planning to alleviate workers’ financial troubles, entitled All Your Worth: The Ultimate Lifetime Money Plan.

Experts are still debating whether the Warrens were the creators of the 50/30/20 rule, but no doubt their books and public interventions helped make it known.

The first step is to classify our expenses into needs and wants and to open up a space for savings and investments for the future within that long list.

The plan described by Warren is that 50% of the family income must be used for essentials: rent or mortgage, grocery shopping, services like water, electricity, telephony, health expenses, necessary clothing, debts, and other obligations like caring for the elderly in the family.

When the need exceeds 50% of your income, tighten your belt. Save gasoline by using public transport more often and make consumption changes that allow you to save on basic services such as investing in lower-power devices.

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