As I work to be better at budgeting, I searched the Internet for strategies for how much I should be spending on various items each month. I like the 50/20/30 strategy which seems reasonable and maybe even do-able.
Basically, you split your after-tax, after-401k take-home income into 3 buckets:
50% – fixed expenses
20% – financial goals
30% – variable expenses
So my after-tax income (now that I’ve maxed out my 401k for the year) is $9500. That breaks down to:
$1900 financial goals
$2850 variable expenses