Enter what you take home each month. You'll get a spending limit for needs, wants and savings.
Save each month
$10,800 a year
| Needs: rent, food, bills | $2,250 |
|---|---|
| Wants: fun, travel, extras | $1,350 |
| Savings & extra debt payments | $900 |
Set a target and a date for your savings bucket in the savings goal calculator.
A simple budget that splits after-tax income into three buckets: 50% for needs (housing, groceries, utilities, insurance, minimum debt payments), 30% for wants (dining out, travel, subscriptions) and 20% for savings and extra debt payments.
Take-home pay: what actually reaches your bank account after taxes. If you contribute to a 401(k) from your paycheck, you can count it toward the 20% savings bucket.
That is common in high-rent cities. Trim the wants bucket first, keep at least some savings going, and look for one large fixed cost (rent, car payment) to bring down over time.