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Old 09-24-2006, 07:32 PM
Broken Arrow Broken Arrow is offline
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Default Re: Paying Yourself First

Quote:
Originally Posted by timetosave
How much do you 'pay yourself'? How do you calculate that...what are you paying yourself for? Is this the money that goes into your emergency fund or some other type of fund. Should this be what I put aside for things like Christmas etc.?
This is a very good question for me right now, because things are kind of up in the air due to my recent relocation.... For example, I still don't know exactly how much to budget for utilities.

So, I'm slightly concerned I may have overextended my budget....

For now, I am allocating 25% for retirement, 25% to pay down the student loans quicker, and 12.5% or so for savings (which includes paying for the holidays). The savings is lower because my emergency fund is a fairly healthy size right now.... The rest of the budget is necessary just to live (rent, gas, food, etc.)

It's a bit aggressive, but with any luck, my budget will hold. I'd hate to have to cut back on retirement and/or student loans....
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