Using the 50/30/20 allocation, should insurance be parked under expenses or savings?

It could be under expenses for protection/accident/health insurance. I would put WL plans here too as it’s more widely used for CI coverage than attaining its cash values

As you are expecting money back for endowments/annuity it can be parked under savings and try to only count the guaranteed amounts or announced cash bonuses, leave out the projection for now.

As for the allocation, it’s a good guideline as to where your money should go but not a mandate.

You should see what priorities you have in your life and attend to them.

That is not to say you spend everything.

I’ve talked briefly about this amongst other things in this related article:

https://www.theastuteparent.com/2019/11/start-a...

Hi Xuan Le,

I would consider Insurance an expense. You'll need it, and you have to spend on it.

I personally use a 4-3-2-1 allocation. 40% expenses, 30% loans, 20% save/invest, 10% insurance. Now, in the event where you don't have loans to repay (e.g. no house yet), you can channel that 30% to either expenses or save/invest, so there's a bit of wriggle room there. So you can see when you are young, there's more allocation to play around. Allowances to parent fall under 40% for me. So yes, I am investing close to 50% of my income (I don't have a housing loan to repay....yet)

Save/invest because once you have saved up your emergency fund, you can just earmark 20% every month to be invested. Whether you deploy it or not is another matter entirely (e.g. in the case of shares where you might be waiting for the right price)