That was something a banker and economist acquaintance I knew said. I compile all my monthly I expenses I know I have to pay for, that's rent, electricity, insurance, car payment, gas, phone bill, food, etc et al. It's all about the debt to income ratio. I know I have to pay for them so I account for them.
It's not pretty, but usually in a month I have a few extra hundred to endeavor on one of my goals. I just took my cat to the vet, his anemia looks better and the cyst is confirmed benign. I also got a voucher from the humane society to help cover the costs and there are credit cards that will cover up to 80% of the bill. I also booked and paid to meet my credit limit on my dental credit card an appointment to extract my three remaining abscessed teeth. That was just this last month prior, all of my bills paid, buying food to last for a month (meaning today's grocery shopping might be less expensive), also buying a car recently. I met my basic needs, just the things I deem necessary for my modest survival, and afford some progress on my goals.
I planned all that by paying for expensive bills early and doing a bunch of little things together until I had a relatively free check to use as I saw fit
With everything I account for, my debt to income ratio is about 55%, so I've gotta be selective about how I save and spend. Figure out what yours is, if you know you spend $300 a month on groceries then write it down. If your family gets reliable and consistent income elsewhere write it down. After everything you know you have to pay for, you're left with what you can consider extra income. It could be for headlights or augurs (true story) or it could be for personal things, goals, new possessions. But that percentage, that amount, it paints a much better picture on how liberal you should feel on your spending
How much is too much monthly expenses
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30% of just bills or all monthly expenses combined? I combined my budget for food and gas in my sum.
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That was something a banker and economist acquaintance I knew said. I compile all my monthly I expenses I know I have to pay for, that's rent, electricity, insurance, car payment, gas, phone bill, food, etc et al. It's all about the debt to income ratio. I know I have to pay for them so I account for them.
It's not pretty, but usually in a month I have a few extra hundred to endeavor on one of my goals. I just took my cat to the vet, his anemia looks better and the cyst is confirmed benign. I also got a voucher from the humane society to help cover the costs and there are credit cards that will cover up to 80% of the bill. I also booked and paid to meet my credit limit on my dental credit card an appointment to extract my three remaining abscessed teeth. That was just this last month prior, all of my bills paid, buying food to last for a month (meaning today's grocery shopping might be less expensive), also buying a car recently. I met my basic needs, just the things I deem necessary for my modest survival, and afford some progress on my goals.
I planned all that by paying for expensive bills early and doing a bunch of little things together until I had a relatively free check to use as I saw fit
With everything I account for, my debt to income ratio is about 55%, so I've gotta be selective about how I save and spend. Figure out what yours is, if you know you spend $300 a month on groceries then write it down. If your family gets reliable and consistent income elsewhere write it down. After everything you know you have to pay for, you're left with what you can consider extra income. It could be for headlights or augurs (true story) or it could be for personal things, goals, new possessions. But that percentage, that amount, it paints a much better picture on how liberal you should feel on your spending