佛周记：My recipe for financial success

Different financial experts will offer different solutions for successfully managing your finances. My recommendations are not for everyone, but they have worked well for me over the years. Every month you have a net income – that is, your income after taxes and other deductions. I am going to offer you two situations, one that includes debt and one that does not.

If you currently have debt, this is how I recommend you spend your net income each month:

• approximately 35% on housing, including utility bills for electricity, water, etc.
• approximately 15% on transportation, whether you have a car or not
• approximately 25% on life, including your cellphone, groceries, clothing, going out, etc.
• approximately 15% on paying off your debt
• approximately 10% on savings

If you are spending more in any of these areas, it suggests you need to cut your expenses – for example, by moving to cheaper housing.

If you don't have any debt, however, change that savings percentage to 25 percent, and your money will increase before you know it.