This includes contributions to the Thrift Savings Plan or a Roth IRA.ħ% Insurance ($350/month): Life, health, auto, renters and whatever it takes to put together a comprehensive package of insurance (except homeowners which falls under housing) to protect you and your family. By setting aside money each paycheck you can avoid debt when something unexpected comes up and then automatically refill the account to rebuild your reserves.Ĥ% Entertainment ($200/month): Who says financial planners aren't fun? Hopefully, there's a financial date night in your mix that includes stuff like movies, dancing and whatever makes you smile.ġ0% Retirement investments ($500/month): This is money set aside for your long-term goals. In reality, this is money that you have to come up with for all life's surprises - like that big vet bill for Fido or that water heater that just died. Sports for kids or vacations may come from here.Ĥ% Short-term Savings ($200/month): This is what should be going into your emergency fund each month. Seem low? You don't need all the extras! This is typically an area where savings can be realized.ġ2% Food ($600/month): This is what it takes to put food on the table, in the lunchbox, the school cafeteria, or unless you're calling it entertainment, on the town.ġ1% Other Stuff ($550/month): This could include clothes, charitable contributions and the other expenditures not covered by our other categories. Check that, they were house rich.ġ0% Transportation ($500/month): That's car payments, gas, repairs and whatever it takes to get from work to home and everywhere else you go.Ħ% Utilities ($300/month): Electricity, gas, garbage, water, cell phones, cable or satellite are all items that fall in this slice. This may be lower than what a lender will lend, but too many folks are house rich and cash poor. Mortgage (principal, interest, taxes, and insurance) and/or rent. 20% Housing ($1,000/month): This includes the core of what it takes to put a roof over your head.
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