Step Four: Spend 20 Percent on Savings and Debt Repayments. Now about the extra ๛ you pay on that credit card each month. That's neither a want nor a need. It's the ൜" in the 50ቺተ rule. It's in a class all its own. You should spend at least 20 percent of your after_tax income repaying debts and saving money in your emergency fund and your retirement accounts.
But try this anyway. Creating a budget and then following it can help you spot areas where you're spending more than you realize. Here you will find tips on how to create a budget and track expenses along with other money management techniques.