50/15/5: A Saving and Spending Rule of Thumb
This article is written and provided by our partners at Fidelity Investments. Key takeaways Consider allocating no more than 50% of take-home pay to essential expenses. Try to save 15% of pretax income (including employer contributions) for retirement. Save for the unexpected by keeping 5% of take-home pay in short-term savings for unplanned expenses. Budget. [...]