![]() You’ll also want to share any raises you get with your “future self.” That means any time you might get a bonus or promotion, kick a reasonable chunk of that money into a savings or investment product, depending on your personal financial strategy. Be sure you’re taking advantage of any before tax investing opportunities through your employer 401(k). That said, there are a few ways to reallocate to up this savings share of your budget. This might feel like an aggressive share of your budget to work toward savings, so it’s understandably a goal percentage for many of us versus the reality. “Saving” should include a plan for your investment and retirement savings, as well as short-term emergency funding. Saving should be about 20 percent of your total income, and as you’ve always heard, you should try to pay yourself first every month from this category. In that case, try to take share from the spending section instead of cutting back on savings if at all possible. For those of us living in cities or without roommates and families, this may be a greater share of our budget than standard frameworks would suggest. ![]() Housing isn’t just rent or your mortgage payment-it’s insurance, repairs, utilities, and any other dues or fees you pay related to your living space. These expenses can be harder to shift quickly or cut back on in a pinch, so grouping them together can be a helpful way to see what your personal fixed expenses generally look like month to month. ![]() Housing, groceries, insurance payments, and any childcare expenses go here. This is the largest expense area for most of us, and should account for about 50 percent of our budget.
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