From the course: Build Sustainable Wealth and Get Out of Debt

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Choosing 70% of your living wages to go toward living expenses

Choosing 70% of your living wages to go toward living expenses

From the course: Build Sustainable Wealth and Get Out of Debt

Choosing 70% of your living wages to go toward living expenses

- Now for your 70%, your living expenses should utilize 70% of your income and no more than that, they might even be less. This includes your food, clothing, gas, insurance, entertainment and other expenses. What many people find is that the category allotted to their living expenses is out of balance. Most of the time, the amount spent in this category far exceed 70% of the allotted income, that's a tough realization, but this is where the rubber meets the road. For your convenience, we are giving you the 10-20-71 worksheet, which is really just a cashflow worksheet that you can use to make an assessment of what's happening with your income and how it's being spent. Knowing what's happening is the first step towards knowing what to do. Looking at yeah your living expenses, you may need to make some changes so you can be more successful enacting your plan to get out of debt. Now, unlike other financial gurus, that…

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