Allocate Budget Percentages as Followsįor other key expenses you need to budget for, Cruze breaks it down like this:įood is going to be one of the bigger line items in your budget, but Cruze doesn’t say what percentage you should allot. Still, it’s good to always put something toward retirement, especially if you have any kind of employer matching program. If you’ve done the first three steps, you should begin to put 15% of your income into retirement accounts, but only if it doesn’t compete with your ability to get out of debt. She doesn’t suggest a set strategy for how, or how soon, you can expect to build this fund, but knowing the goal is three to six months worth of expenses will give you a target and a method for carving out unnecessary spending in your budget. Once you’ve paid off your debt, you reward yourself not by spending, but by funding three to six months of expenses in an emergency fund. ![]() More: 4 Red Flags as You Check Your Bank Statements Every Month Build a Full Emergency Fund However, with dedication and a positive attitude, she says most people can achieve this. Next, you should pay off your debt, which she admits is the hardest step of them all because it can take the longest and feel the most discouraging when your goal is to save money. You don’t need to put more away - not just yet, anyway. More specifically, to put away $1,000 ASAP as a kind of emergency fund starter. ![]() Unsurprisingly, one of Cruze’s first pieces of advice is to save. Before you get into the nitty gritty, she suggests you take the following steps. Fortunately, financial expert Rachel Cruze helps you break down budget percentages into granular detail, making sure you’re really on top of your finances.
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