You’re budgeting wrong now — why the 50/30/20 method no longer works and how much you should save instead

This financial plan may no longer make cents.

Sen. Elizabeth Warren’s 50/30/20 method was once touted as a gold standard for budgeting, fortifying followers for a strong financial future while still allowing them to enjoy their day-to-day lives.

Under the system — popularized by the Massachusetts Democrat and her daughter, Amelia Warren Tyagi, in their 2006 book “All Your Worth: The Ultimate Lifetime Money Plan” — workers ideally spend 50% of their after-tax income on needs and 30% on wants while putting the remaining 20% into stocks, savings or a retirement fund.

But amid ongoing inflation, the 50/30/20 method no longer feels feasible for families who say they’re struggling to make ends meet.

Financial experts agree — and some say it may be time to adjust the percentages accordingly, to 60/30/10.

“If you’re taking someone that’s just starting or living paycheck-to-paycheck, it can be unrealistic or overly drastic, especially as they’re beginning to really get a handle on their finances,” Brian Walsh, ​​head of advice and planning at digital bank SoFi, told Time last week.