Step 6: Keep checking in. It’s important that you review your budget on a regular basis to be sure you are staying on track. Few elements of your budget are set in stone: You may get a raise, your expenses may increase or you may have reached your goal and want to plan for a new one. Whatever the reason, keep checking in with your budget following the steps above.
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.