The 60% Principle

Þ       60 % Expenses

·       Let 60% of your monthly income go directly to expenses.

·       Expenses include; rent, utilities, vehicle expenses, and any other fixed expenses you have every month.

Þ       10 % - Retirement

·       Use 10% of your monthly income toward retirement planning.

·       Invest this money wisely with your retirement in mind

Þ       10 % - Long Term Savings

·       Put 10% of your monthly income into savings for long term purposes

·       Long term purposes may include buying a car, buying a home, higher education, and so on.

Þ       10 % - Short Term Savings

·       Put 10% of your income into saving for short term purposes

·       Consider this money to be your rainy day or emergency fund.