50%
Essential Expenses
Essential Expenses aren't optional—you need to eat and need a place to live. These should equal no more than 50% of your annual income.Budget. Does anyone like that word? How about the 50/5/15 rule instead? It's meant to demonstrate good financial habits and an appropriate balance between saving and spending.
Essential Expenses
Essential Expenses aren't optional—you need to eat and need a place to live. These should equal no more than 50% of your annual income.Short-Term Savings
Short-term savings, or an emergency fund, is money set aside to cover life's unexpected surprises. This should be at least 5% of your annual income.Retirement Savings
Saving for Retirement is saving for your future. We recommend setting aside 15% of your annual income (including any contributions your employer may make).Lifestyle Spending
Life is meant to be enjoyed, and Lifestyle Spending is just that. After you've taken care of essential expenses and short- and long-term savings, live a little!Speak with one of Sentinel's Financial Planners today!
We can help you better understand how to manage your income and expenses.