How much money should you have left over each month after paying bills?
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I asked this question once but I don't think it came out clearly. I am looking at apartments, after taxes I make around $1600 a month. After I pay my rent, utilities, get grocerys, gas for my car, my car insurance, my student loan payment, internet access and pay my part of my health insurance for work I will have about 200-300 left over each month. I could probably bank about $200 and still have around $100 a month left over for "extras". Does this seem about right or am I living too expensive for what I make? I keep hearing to "bank" 10% of your pay off the top and that would only be $160 and I'm planning on banking $200 and still having some left.
Also, one of the concerns that people bring up is what I will do in the case of an emergency, but I already have a years worth of expensives in a savings account to fall back on if something came up like losing my job or my car breaking down.
Does it seem like I'm doing okay or am I heading towards debt? Thanks for your help!
How much money should you have left over each month after paying bills?First, I think you'll be okay because you're paying attention to your finances and have a desire to keep out of financial trouble. With regards to how much you should have left over is a personal issue, but also very much dependant on how much you make. In your case, your income will be absorbed primarily by living expenses. Dependant of where you live within the USA, I don't know of many places that wouldn't consume at least 30% of your take home just for rent. Then of course comes the utilities and the others you mention. From what you have noted, I think if you can bank $200 per month, you're doing exceptionally well. I'm personally impressed with your desire to stay out of financial trouble. Hopefully your sharing some of your thoughts with others around you...hearing of your concerns is inspiring.
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