New Spending Guidelines

Financial experts recommend the following spending guidelines

If you are spending a larger percentage of your income in any of these categories then review the areas to look for ways to reduce your expenses.

Keep in mind the percentages are spending guidelines, not rigid numbers.

You may need to allocate more or less of your income to certain expense categories. For example, if the cost of housing is particularly high in your area, then spending 25 per cent of your income on mortgage or rent payments may not be realistic. At the same time your area may have a less expensive public transportation system or cost of goods so spending 25 per cent of your income in those areas may be too much.