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Graham Westmacott CFA

Portfolio Manager

Susan Daley CFA

Associate Portfolio Manager
Contact
  • T519.880.0888
  • 1.877.517.0888
  • F519.880.9997
  • The Marsland Centre
  • 20 Erb St. W,
    Suite 506
  • Waterloo, Ontario N2L 1T2

What Should I Spend Each Month?

December 7, 2016 - 2 comments

The golden rule of personal finance is to live within your means, or in other words, spend less than you earn. But for those just starting out or for those whose current system (or lack of system) leaves them with nothing left over at the end of the month, budgeting can seem daunting. I like a rule that is used by Learnvest called the 50/20/30 rule to get started. It’s simple, flexible, and easy to understand. In summary: spend less than 50% of your income on essentials, 20% of your income goes to financial priorities like saving and paying off debts, and no more than 30% should be spent on lifestyle expenses. I outline how you can apply this rule to your finances in the video below.

 

If you’d like a detailed spending tracker, you can download a copy of my own budget spreadsheet here, which is adapted from www.getsmarteraboutmoney.ca’s budget tool.

Do you have a budgeting method or spending rule that works for you? I’d love to hear about it in the comments.

By: Susan Daley with 2 comments.
Comments
  04/01/2017 1:54:22 PM
Susan Daley
Thanks for the kind words, Jim! Please feel free to pass along this video to anyone you think might find it valuable.
 
  23/12/2016 4:55:11 PM
Jim
Straightforward, smart, personable.
 



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