How Much Money Should You Spend?

[Nomad]

One of the major financial issues most people are experiencing is not being able to maintain life with the money they are making. This is mainly due to not knowing how much money they should be spending. Well, to maintain your financial stability, your total spending should always be below 50 percent of your income. This should include your all expenses such as rent, utilities, groceries, insurance, fuel, transportation etc. What do you think?

 

[neku]

It remains difficult to plan expenses if you are travelling or relocating from one state to another . In some states, the cost of transportation is very high.

 

[eLdavis]

I think this calculation is okay, as long as you are not spending more than half of what you are earning. Then again it depends. There are times some unexpected expenses might pop up.

 

[arunima25]

Everyone have their own financial strategies that suits them. It also depends on the financial obligations that one has to fulfill. Some in the same age group with the same kind of income can have more financial obligations than others. So, there is no cookie cutter strategy to fit everyone.
But yes, be watchful. If you are not able to manage within your income, you have to introspect and cut down on the expenses wherever you can. And at least 10 percent should always go for savings and emergency to begin with ( with low income and more obligations). So, set aside that as savings and then plan the expenses. You can always bring in the changes in your financial planning with other changes in life and income.

 

[Springtime]

I spend 50% of my income most of the time. But if I travel, need to buy big household appliances, I need to spend more.

 

[Augusta]

Yes that's how it should be but the unfortunate thing is that life is unpredictable and expenses are endless. You just have to really squeeze sometimes to have savings

 

[Starmix]

I spend without minding how much as long as I like but it's only a very few times. Before the pandemic I used to shop daily without minding how much I spent, but when I attended seminars about financial literacy that changed my life forever. I am now extra careful in spending or as much as possible not to spend if not necessary.

 

[Suba]

If you create a 50:50 personal financial budget, it means that your income is very large, because 50% of your income can be used to finance all expenses, both to meet needs and desires. and in general people make a 50/30/20 budget where 50% is for basic needs, 30% for desires such as buying shoes, clothes, bags, etc. and 20% for savings and investments.

 

[Fidelia]

For some people, 50% of their income is quite too small to even finance their lives for two weeks, not to talk of a whole month.