Quite frankly, I think you’re not being conservative enough. I’d increase discretionary spending and “emergency savings.”
Of course, this kind of thinking is why some of us get called “perma-bears.” Most people probably cannot afford their housing costs if they budget this way, but they don’t try. They just hope and wait for some magical fairy dust to land on them. It’s like they close their eyes and roll the dice, hoping they won’t lose. Unfortunately, these are the people who set prices in a “free market” economy, so the more conservative types either have to play the game or sit it out — and risk having their savings wiped out by inflation.
