I was chatting with a friend the other day, and her sister messaged her on Skype. Her sister was curious as to about how much she should be spending on common household expenses. Well, I was also curious and decided to hit the books to see what good rules of thumb are.
According to the Motley Fool, you might consider the following very rough guidelines:
Housing and utilities, 25-30%
Saving and investing, 10-15%
Childcare and education, 1-8%
Gifts and charity: Up to you!
Of course, where you live is a major factor in how little you pay for each category. For example the DC area, housing is very expensive. In a rural part of the country like Oregon rent and mortgage prices are more manageable.
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