Basic Budgeting

How much of your income should you spend on what and where? This is a huge deal, and too many otherwise capable people just don't know.

35% or less of your gross income (salary, for most people) into housing, long-term debts, ongoing obligations (like daycare or alimony), and car payments.

15% into retirement savings.

25% to federal, state and local taxes

25% leftover for food, clothing, utilities, social life, home and auto maintenance, etc.

If you make $120k/year, you can probably spend $3000 on housing and $500 on cars.

If you make $60k/year, it's more like $1500 and $250.

If you $30k/year, you probably need to share the rent with some friends and take the subway and the bus around town.

And let's not forget the financial priorities we've raised here in the past. At the very least, folks should have 3-6 months of emergency reserves at the bank or in a conservative/liquid investment at their brokerage firm (a SchwabOne account for most Potomac Wealth Strategies clients).