As a percentage of your total take home income, how much should you be spending on things like food, shelter, transportation,entertainment, savings, monthly bills (ex. heat)? How do you stop living pay cheque to pay cheque?

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Posted by Michelle (MONEY FORUMS: 2, Answers: 4)
Asked on November 8, 2016 12:13 pm
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Hi Michelle. There are some rules of thumb here, but they are just guidelines. For example, the figure for housing costs (which should include utilities) is about 1/3 of take home pay (or 25% on housing and 10% on utilities). If you live in a big city, rent may consume a much larger share. Transportation is often put at 15%, but again, if you live in a big city, don’t have a car and can rely on walking and public transit, that frees up some of this for other things. Food and dining out is 10-15%, entertainment 5%, etc. Savings would be 10-15% depending on age.
There are a few ideas to stop living paycheck to paycheck. One is to get a second or third job and save all you earn to get a jump on savings if you can cut any expenses in the short run. Longer term goals would be to pay yourself first (save money when you are paid and don’t wait to see what is left at the end of the month.) I think that setting up a budget and tracking what you spend against it may uncover spending habits that you can change and ways that you can spend less.
There are certainly some inspiring blogs on this site to give you more ideas. Read on!!!

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: November 12, 2016 1:50 pm
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