I have been living on the 60\/40 budgeting rule for more than three years now. I had read on this subject in a magazine article and in a conversation with a colleague, I found out a simple system in which my colleague has been using for years.<\/p>\n
The Rule (60%) <\/strong><\/p>\n The 60\/40 rule simply says that 60% of your gross income should go to Committed or Fixed expenses. These expenses are your Overhead expenses, meaning the basic things you need to pay to survive. They include:<\/p>\n • Basic food and clothing needs. It looks simple enough but in my experience putting all committed expenses into 60% of my income was a tough thing to do. But don’t give up as it is very possible to achieve this.<\/p>\n The Rule (40%) <\/strong><\/p>\n The other half of the equation is the 40% which is divided into four 10% categories.<\/p>\n • Retirement: Money set aside into your IRA or 401(k) plans. What to Ask Yourself <\/strong><\/p>\n • Are you renting a place or have a mortgage that you cannot afford? Is it worth it move to a smaller place or farther place to save up? How much money will you save if you do so? I have been living on the 60\/40 budgeting rule for more than three years now. I had read on this subject in a magazine article and in a conversation with a colleague, I found out a simple system in which my colleague has been using for years. The Rule (60%) The 60\/40 rule simply says […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[511,2727,633],"_links":{"self":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts\/2338"}],"collection":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/comments?post=2338"}],"version-history":[{"count":0,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/posts\/2338\/revisions"}],"wp:attachment":[{"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/media?parent=2338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/categories?post=2338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techfeatured.com\/automotive\/wp-json\/wp\/v2\/tags?post=2338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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• Rent or Mortgage
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• Utilities (electricity, water, internet, cable subscription etc.)
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• Insurance premiums.
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• Charitable contributions.
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• Taxes.<\/p>\n
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• Long-term savings: Money set aside for car purchases, major home repairs, or to pay down debts such as credit cards, mortgages, etc.
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• Irregular expenses: Vacations, car repairs, new appliances, etc.
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• Fun money: The great part! Do anything you want with this money! Just be sure that this category applies to your whole family such as dining out, a day in the mall shopping, your hobbies etc. But also remember that having fun with your friends, children and family does not have to be costly!<\/p>\n
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• Are your car payments too high? How is the fuel consumption of your car?
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• Do you have too many paid subscriptions that you don’t really use? (Satellite TV, club memberships etc.)
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• What is your lifestyle like? How much do you spend in a week, eating out, going on trips etc?
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• Do you wear designer clothes? Where do you shop?
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• Can you afford to get your coffee or lunch at a cheaper place?<\/p>\n","protected":false},"excerpt":{"rendered":"