true or when calculating the percentages for each budget category, you should use your pre-tax income

When calculating the percentages for each budget category, you should use your post-tax income (also known as take-home pay), not your pre-tax income. This is because your post-tax income accurately reflects the actual amount of money available to spend after taxes and other deductions have been made. Using pre-tax income does not represent the true funds you have for budgeting purposes. This approach is consistent with popular budgeting methods like the 50/30/20 rule, which divides after-tax income into needs, wants, and savings categories. Most financial experts recommend basing budget percentages on net income for a realistic and practical financial plan.