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Surviving Within The Means

balancing income and expense

The economy is often a focus in a general election; however, only approximately 20 percent of the U.S. population actually focuses on their individual budgets. Yahoo Financially Fit website estimates that about 50 percent of Americans survive paycheck to paycheck.

One idea for splitting up one’s paycheck is to allocate 50 percent for housing, utilities, groceries, insurance and other expenses needed for survival, ie, non-discretionary expense; at least 10-20 percent for savings; and the balance for discretionary spending such as meals out, entertainment, and the like.

The more one can increase the savings percentage, and reduce the discretionary spending, the less stress will be felt when the unexpected expense occurs.

It is also important to note that if the non-discretionary expense is higher, one may need to re-evaluate the discretionary spending, in order to live within means.

Small purchases add up, so be sure to review spending at least monthly.

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MJ, Chief Solutions Officer