List your expenses starting with the most important to the least important. Listing the expenses in order makes it easier to make cuts in your budget if needed. The most important should be things that cover your necessities. You will need to cover your housing, food, utilities (not including cable television), transportation costs, debt payments, and savings goals first. Then you will list luxury items which can include clothing, entertainment, eating out and gym memberships.
An Example of the 50ቺተ Plan. Let's say your total take_home pay each month is ū귔. Using the 50┺┰ rule, you can spend no more than ũ껎 on your needs per month. You probably can't afford a ũ귔_a_month rent or mortgage payment, at least not unless your utilities, car payment, minimum credit card payments, insurance premiums, and other necessities of life don't exceed 趚 a month.