The percentages in this chart illustrate the amount of your income financial experts say people should spend on each of their expenses. If you are spending a larger percentage of your income on any of the expense categories, then those are the expense categories you should target first for budget cuts.
Keep in mind that the percentages are spending guidelines, not rigid numbers. You personally may need to allocate more or less of your income to certain expenses.
For example, if the cost of housing is particularly high in your area, then spending 25 percent of your income on your mortgage or rent payments may be unrealistic. But at the same time your area may have a less expensive public transportation system or cost of goods, so spending 15 percent of your income on that expense may be too much.
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