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You can spend ũ값 a month on your "wants" based on that ū귔 you're bringing home each month. You might consider doing without a few things and shifting some of this money to your "needs" column if you're coming up short there_not necessarily indefinitely but until you can get your needs down to a more manageable level. Remember, you still need 20 percent left over so you can save and pay down your debts according to the 50ቺተ plan. Now you have 轜 left, that last 20 percent. You know what to do with it. Pay down on debt, save for an emergency, and plan for your future.

Deal with Your Debt. Few people get far in adulthood without accumulating some form of debt: credit cards, student loans, car loans, and mortgage payments are common. In fact, debt can be a good thing (who has the money to buy a house outright?), but the key is to use them wisely. Credit cards and other forms of debt can be an essential part of your financial toolbox, but you must exercise care when using these tools. Understanding the difference between good debt and bad debt will go a long way in making sure you create and maintain a good credit history.

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