When you start making money, it’s easy to want to buy everything. A nice place to live. A cool car. New clothes. Fun trips. But if you spend too much, you won’t have enough left for savings or emergencies.
So, let’s break it down nice and simple.
🏠 Housing – 30% or Less of Your Income
Your rent or mortgage should not be more than 30% of the money you make each month.
Example:
If you make $3,000 a month, try to keep your housing at $900 or less.
That includes:
Rent or mortgage Property taxes Home insurance Utilities (like water, lights, and gas)
If you go over 30%, you might not have enough for food, savings, or fun.
🚗 Car – 15% or Less of Your Income
Cars can be tricky. A brand new car looks cool, but the payments can hurt your pockets.
Try to keep your car cost under 15% of your monthly income.
Example:
If you make $3,000 a month, don’t spend more than $450 a month on:
Car payment Car insurance Gas Repairs
Pro tip: If you can buy a car with cash, do it. No payments = more peace.
🛍️ Other Big Things – Don’t Rush It
For things like:
Vacations Jewelry Furniture New tech (phones, TVs, etc.)
Use the 50/30/20 rule to stay balanced:
50% = Needs (rent, food, car, bills) 30% = Wants (fun stuff, shopping, eating out) 20% = Savings (future you will thank you)
Only buy big stuff from the 30% “Wants” section — and only if you have money left over.
💡 Final Tips
If you can’t buy it twice, you probably can’t afford it yet Always save at least 20% of your money if you can Use cash or debit for big things to avoid debt Don’t buy stuff just to flex — buy it when it makes sense
🎯 Remember:
Spending smart doesn’t mean no fun. It means long-term freedom.
Make your money work for you, not just fly out your pocket.
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