Monthly Money Flow

Calculate the percentages below off of the post-tax income.

Fixed costs get taken out of the take-home income first because these are things that must be addressed.

Includes any costs that must be paid each month:

• Rent / mortgage

• Utilities - gas, water, electric, internet, cable, phone, etc.

• Insurance - medical, auto, home, renters, life, disability, malpractice, etc.

• Car payments / transportation

• Debt payments

• Subscriptions

• Groceries

Keeping this number as low as possible will reduces stress and increases financial flexibility.

If money feels tight, it is often because the fixed cost percentage is too large.

Ideally, money is regularly placed into investments on a fixed schedule. 

This can be done using regularly scheduled automatic deposits or manually.

Depending on lifestyle, this number may be adjusted, but investing the money prior to free use ensures that consistent steps are being made toward future goals.

Now that all the fixed costs have been paid and your investments have been addressed spend this money guilt free on anything that you want!