With all the talk about recession and stimulus packages, I thought I’d look up what’s recommended spending by professional money managers. If we all stick to something like this, we won’t have to worry about losing house, cars, etc.
- 35% of income should go to housing (mortgage, taxes, repairs, improvements, insurance & utilities)
- 20% transportation (payments, gas, insurance)
- 20% other expenses (food, insurance, medical, entertainment, clothing)
- 10% savings (stocks, bonds, cash)
- 20% other (debts, loans) Of course, if this percentage is lower for you, it can be added into mortgage or savings.