Understanding Expenses

Manage your income in a way that allows you to achieve financial freedom which means you have a chance at a comfortable lifestyle in the future. By following a guideline of management which includes an emergency savings account, retirement savings, an account for your family’s education, savings for vacations and fun and money to give back or for a loved one in trouble, you are taking care of all categories of income management.

Suggested percentages to manage income and expenses – use regardless of your income amount.

• 30% mortgage/rent
• 30% living expenses – medical, transportation, utilities, food & groceries, life insurance
• 10% for the future (retirement)
• 10% emergency savings / mid term savings
• 10% donations to charity/giving
• 10% entertainment/ vacations/ holidays

Remember, pay yourself first. Manage your money to pay your expenses, invest and save significant amounts of money to meet financial goals and prepare for your future and reach financial freedom.