This Chart Shows the Difference Between a Broke and a Rich Budget.
Because we tend to find it rude to talk about money with other people, it can be difficult to figure out how to move from ruin to financial stability. This table will help you understand the difference.
The spreadsheet from the Life and My Finances personal finance site allows you to enter your monthly income and then automatically divides it into two budgets. A “hopeless” budget shows how that income can be divided into a typical budget that can leave you in a pay-to-pay lifestyle. The second provides a breakdown to help you save money and cut costs.
Much of what you find reinforces what we said earlier, such as spending less than 28% of your income on housing . However, if you look at this in a specific budget, it will help you understand what sacrifices you can make. The site also points to the advantage of buying old paid cars rather than getting a loan to buy a car and investing that money in savings. When you’re done checking the two budget targets, you can adjust the proportions in the third budget until you get one that works for you.
How much should you spend on this? | Life and my finances via Rockstar Finance