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Calculate Your Spending Ratio


A spending ratio shows how much of the available income gets spent, and on what. People often talk about 3 percentages; how much you spend on day-to-day living, how much you spend on yourself, and how much you save. These days, a 50-30-20 split may be unreasonable for many people; you very well might need to spend 80% on day-to-day living, 20% on yourself, and 0% in savings, as many recent graduates find themselves struggling with entry level jobs and high costs of living. Others, with proper footing, might go for a 30-30-40 split, since they found a way to save money or are living with family. This is a safer solution to be sure, but not everyone has this opportunity, or wants to make these sacrifices. It’s more important that you know what you’re spending on so you can prioritize changing these values so you can save more and spend less. The actual percentages won’t matter in the short-term.


  1. The typical 50-30-20 ratio may be unreasonable.
  2. Consider how much you can afford to save given your life.
  3. Overestimate utility and luxury, so the extras can go into savings.
  4. Savings is what matters most in this ratio.