How much should you budget for incidentals?

What this breaks down to, essentially, is allotting percentages of your anticipated monthly income into one of three categories: Essential Expenses (50% of monthly income) Savings/Debt Payment (20% or more of monthly income) Incidental Expenses (30% or less of monthly income)



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40% of your income goes towards your savings. 30% of your income goes towards necessary expenses (food, rent, bills, etc.). 20% of your income goes towards discretionary spending (entertainment, travel, etc.). 10% of your income goes towards contributory activities (donations, charity, tithe, etc.).

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Your monthly income. If this number feels unrealistic in your housing market, that's because the 30% rule is actually pretty outdated—it originated in 1969, and hasn't been updated since. It also doesn't hold up at especially high or low income levels.

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