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Trick is to find what works for you and your family. I'm not a fan of arbitrary limits so we use a "seat of the pants" approach.
We don't budget, but do track every penny in Quicken. My wife has the salary and benefits while I'm self employed. Big chunk of her salary goes to 401K + we have the health savings maxed out. Her withholding is set to single rate with no dependents so basically my taxes are paid via her check. We have an automatic transfer from checking to savings on her payday. This savings account is for vacations, car purchase, repairs, etc. So most of the big stuff is covered by the time what's left hits checking. Sometimes that balance goes up or down depending on a variety of factors. If the checking balance gets too high, I'll transfer some to savings. As long as our checking balance overall trend is level or moving up, I figure we're doing ok.
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Lee
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