Are you spending your money on the right things? From transportation to entertainment, to the amount of debt you’re carrying, comparing your expenses to what’s recommended may highlight areas for change.
View the pie chart to see what’s included in each category. Add up the expenses that apply to you, and jot down your category total. To calculate the percentage, divide the category total by your monthly income. Move the decimal two places to the right, and that’s the percentage. Here’s an example: If your housing expenses are $1,300 and you make $3,750/month, divide $1,300 by $3,750 and you get .346. Move the decimal and it’s 34 (or 35, rounding up) percent.
If, in the savings category, you find you’re not hitting 10% (or more) but you’d like to, read this helpful article on how to boost your savings.