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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?

Just remember that being self_employed means that you must also pay the self_employment tax, so include this in your calculations. The self_employment tax is double what you would pay in Medicare and Social Security taxes if you were employed.

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