9 Best Personal Finance Habits to Start Now
Want better personal finances, but can’t seem to get out of your own way? Learn how with the 9 best personal finance habits to start now!
Budget
What Percentage of Income Should Go To Housing?
When renting or buying a house, it’s important to know what percentage of income should go to housing because it’s often your largest monthly expense.
There is no one-size-fits-all rule for every situation, but there are some general rules of thumb to help guide you when making the decision.
However, to truly know what percentage of income should go to housing, you need to examine your current financial picture, what your financial goals are, and what options you have available to you for housing.
Once you have this information, you’ll be able to clearly see what percentage of income you should spend on rent.
What Percentage of Income Should Go To Rent?
When renting your first apartment or house, it’s important to know what percentage of income should go to rent. Each person’s situation is a little different, so there will be a different answer for everyone.
To start, you’ll need to examine your current financial picture, what your financial goals are, and what options you have available to you for rentals.
Once you have this information, you’ll be able to clearly see what percentage of income you should spend on rent.
What is the 50-30-20 Budgeting Rule?
Throughout my life I’ve found that simple is better, especially when it relates to creating and maintaining systems (budgets included). The more complicated you make something, the more opportunities for failure. This is a big reason I advocate the 50-30-20 budgeting rule, especially for folks just starting out with budgeting.
Benefits of Managing Your Budget Effectively
Most people know what a budget is and have some idea of why it’s important, but are reluctant to start one because it requires a little extra work.
The benefits of managing your budget effectively far outweigh the little work required to keep one. If you’re serious about improving your finances and achieving your financial goals, you absolutely need to start a budget and start being intentional with your spending.
Emergency Fund Guide: What, Why & How Much Money to Save
Our lives are constantly changing with surprises occurring daily. Unfortunately, many of those surprises come with negative financial consequences. You can’t plan for everything, but you can create a financial buffer, an emergency fund or rainy day fund, to mitigate the risk.
Emergency Fund Guide: What, Why & How Much Money to Save Read More »