Do you know about the 15% rule?
50/15/5. It’s a simple rule of thumb:
- 50% or less of your income should go to essential expenses,
- 15% to retirement savings, and
- 5% to short-term savings.
As long as you stay within those guidelines, the remainder is yours to save or spend as you see fit.
See how your actual savings and spending compares to our guidelines (provided by Fidelity Investments)