I’ve learned a lot of things from this book I have with a bunch of condensed book summaries on different subjects. I love stuff like that. Regarding financial matters here’s some helpful advice, every time you get a paycheck, take your net income and divide like so: 20% to debts, 10% to savings, and live on the remaining 70%. It sounds good to me.
Here are some things I’ve learned on my own that I would add:
- It helps to take the debt payments and savings right off the top. Over time you will get used to living on less money that way. Obviously, once you pay your debts put the extra 20% into savings.
- Another rule of thumb, you should try to spend 25% or less of your monthly income on rent.
- Pay your bills as soon as they come in. This may not be realistic at first, but try to start saving so you can do this. Late fees can account for an additional 10% on top of your regular bill.