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This varies on a lot of things, especially housing which varies based on location (as does transportation). But... You should have a breakdown of that 45% (you might and you just don't want to share it, that's fine)..it's the biggest piece of the pie, and it's the most likely place to optimize. Also, rather than think in terms of "what % should I save", you should think of it in terms of how much money you need to retire at the age that you want to. You also seem to think of "savings" as putting money aside, which is wrong, wrong wrong. Do you pay more interest on your credit card or mortgage than you get from your savings? If so, you'll "save" more by paying those down first (of course, you need to understand your mortgage to know what you can and can't pay down). Personally, I'd find 80% of my money going into housing and "other expenses" unacceptable. But, I live frugally, I no longer own a car (or the insurance, or the gas that goes with it), I know how to cook, I don't impulse buy (my Kindle 3 is going to last me for years), I no longer own a tv/cable. And I hate to be one of those guys, but I can safely say that giving up a car and tv have caused huge gains in my productivity, health and happiness. To answer your specific questions:
a - 25%: but, I live in Hong Kong, where the rent is stupid (but everything else is awesome cheap)
b - 0 (CC is automatically 100% paid every month), moving from owning to renting and giving up driving cleared me from any loans...happy days.
c - 25% on "other expenses"..which is more of an average due to spikes (like buying a new bed, moving, getting a new macbook). |