Living within your limits helps keep your personal finances healthy.
It’s okay to keep it simple. Tracking your spending in a few broad categories can help make budgeting easier. Consider using the budgeting activity tracker below to help you find ways to spend less and save more. Consider automating your savings instead of seeing what you may have left over at the end of the month.
Where should you start?
Retirement Savings 10%+ of gross pay*
This percentage includes your individual contributions, along with any contributions your employer makes.
Essential expenses <60% of take-home pay*
This covers housing, food, transportation, health care, childcare, student loans and other minimum debt payments.
Discretionary expenses <30% of take-home pay*
This percentage includes the “nice to haves” such as eating at restaurants, hobbies, and holiday travel.
Short-term savings 10%+ of take-home pay*
This helps you build an emergency fund and cover other unplanned expenses.
*For hypothetical illustration; all considerations, percentages and amounts above may vary by location and individual situation.
