If you already own your home or you're locked into a lease, you're pretty much stuck with that ũ귔 payment. Consider relocating when your lease expires to make your budget more manageable or take a look at your other "needs" to see if there's a way that you can reduce any of them. Maybe shop for more affordable insurance or transfer the balance on that credit card to one with a lower interest rate so your minimum payment drops a bit. Your goal is to be able to fit all these expenses into 50 percent of your take_home after_tax income.
The 50ቺተ Rule of Thumb for Budgeting. You've reviewed your spending and created a budget, and now you know exactly how much you spend on your home, your car, discretionary spending, and how much you divert to your retirement accounts. That's all good, but what about your other savings, such as for an emergency? How does your financial allocation compare to the amount you should ideally spend and save?