Fix My Finances

I found a good article about creating your first budget. It is based on “The 60% Solution”:

The simplest way to budget may well be “The 60% Solution.” The basic idea is that all your “essential” spending — taxes, food, shelter, clothing and the rest — comes out of the first 60% of your total, pretax income. The rest, in 10% chunks, is devoted to retirement savings, emergency savings (or debt repayment), short-term savings for irregular expenses (like holidays and car repairs), and fun money.

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Christy Patrick wrote this on April 7th, 2005 and filed it under Budgeting, Fix My Finances |