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Q:
What specific percentage of my income should go toward housing, clothing, entertainment, etc?

I would like to know the specific percentages of your income that should go toward housing, clothing, groceries, entertainment, medical, savings and whatever else I have left out? I just filed bankruptcy and don't want to make the same mistakes again! -Vicki

Vicki,

One of the guidelines MMI uses in advising people on "what to do with your money" is a formula we outline as: 70+20+10=100.

Translated, that means of your net income, no more than 70 percent should go towards living expenses. These expenses are for such items as house payment, food, utilities, etc. No more than 20 percent of your income should go to your creditors. These credit payments would include vehicle payments and credit card payments. The remaining 10 percent of your income should go towards savings, investments and to cover emergency expenses. If you follow this 70+20+10 formula, you will be practicing sound financial money management.

Good luck,

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