HomeInvestingPortfolio ManagementLifestyle Budgeting: 28% Or Less Of Income Should Be Spent On Housing
Lifestyle Budgeting: 28% Or Less Of Income Should Be Spent On Housing

"A lifestyle creep can happen with increasing lifestyle expenses as income increases. You should track spending with a budget and monitor your debts, savings, and changes in net worth. Credit cards and 'buy now, pay later' can make it easy to overspend. No more than 28% of income should be spent on housing and no more than 36% paying off debt. Make saving and investing automatic and utilize 401k and IRA contributions," says Carrie Schwab Pomerantz.

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