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In others, like San Francisco or New York City, it often barely buys amiddle-class lifestyle.
And how far that money goes also depends on your age.
If youre in your 50s, consider the following three approaches tobudgetingif you earn in the low six figures.
For this template, Ive ordered the expenses in my personal rank of importance.
The first half is necessities and the second half is discretionary.
I intentionally place savings as thesecond line item.
Finally, Yaokasin stated that budgeting is a zero-sum game.
For example, someone inNew York Citymight spend more on housing but avoid having a car and auto insurance.
Some people thrive on a looser, bucket-style budgeting strategy.
That is followed by savings, then travel and entertainment, he advised.
Keep an emergency fund in cash savings.
A good rule of thumb for savings is 3-6 months of living expenses.
Beyond a Line-Item Budget
Some people prefer an even looser approach to budgeting.
And the more you earn, the more leeway you have in your budgeting.
Its not an unlimited amount of money, but still not scrimping to save.
Many people at this income bracket just have a savings target.
Consider setting aside 10-25% of your gross income as the first expense that comes out of each paycheck.
Its more imprecise because you might generally afford a bit more wiggle room.
Some accounts will naturally be higher in some months and lower in others.
Set the savings goal first and then dont worry about the small details, Persichitte said.
No matter how you budget for savings, dont rely onself-discipline or motivation.
With retirement in sight in your 50s, double down on your retirement investments to finish strong.
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