How Much Money Should You Set Aside For Entertainment?

How much money should I spend on myself?

The basic financial planning rule is that housing costs shouldn’t take up more than 30 percent of your monthly income, groceries and personal items should be around 10-15 percent, and utilities around 10 percent.

Self-care should take up much less than that — about 5 percent of your budget, maximum..

How much extra money should you have each month?

How much should you save every month? Many sources recommend saving 20% of your income every month. According to the popular 50/30/20 rule, you should reserve 50% of your budget for essentials like rent and food, 30% for discretionary spending, and at least 20% for savings.

Where should I save my money?

High-yield savings account. … Certificate of deposit (CD) … Money market account. … Checking account. … Treasury bills. … Short-term bonds. … Riskier options: Stocks, real estate and gold. … 8 places to save your extra money.More items…•

How much should you have in savings?

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000. Personal finance guru Suze Orman advises an eight-month emergency fund because that’s about how long it takes the average person to find a job.

How much money should you have after paying bills?

According to the rule, you should be spending no more than 43 percent of your before-tax income on all your debt payments. So, if your gross income per month is $4,000, your total debt including mortgage, auto loans, credit card payments and student loans should be less than $1,720.

How much does average American have in savings?

American Savings Statistics (Editor’s Pick): Americans have more than $1.2 trillion in personal savings. 69% of adult Americans have less than $1,000 in a savings account. The average household savings in America are at $16,420.

What does the average person spend on entertainment?

Entertainment. The average household spends $2,482 a year on entertainment, and I’m guessing that some of the “other expenses” might fall into this category, too. To break this down, this adds up to a little over $200 a month spent on entertainment.

How much should you budget for hobbies?

Elizabeth Warren co-authored a book on personal finance that proposes the 50/20/30 budget – 50% of your take-home pay to necessities, 20% to savings and 30% left for “wants.” If hobbies and entertainment make up your biggest “want, here’s another rule of thumb: limit spending on hobbies and entertainment to 10% of your …

What age group spends the most money on entertainment?

Con- sumer units with reference persons in the age group from 35 to 54 had a population share of 42 percent, but accounted for more than half of the total of $203 billion dollars spent on entertainment.

How much do Millennials spend on entertainment?

In 2018, millennials spent an average of $2,391 on entertainment, while Gen Xers and baby boomers spent an average of $3,921 and $3,801, respectively. As a percentage of overall spending, millennials still lag behind Generation X and baby boomers.

How much should you spend a month on entertainment?

Most Canadians spend about $160 per month, or 5% of their monthly budget, on personal and discretionary items. This includes haircuts and personal grooming, entertainment (like going to the movies or dining out), tobacco and alcohol, gaming, and hobbies.

How much should I save each month?

Most experts recommend saving at least 20% of your income each month. That is based on the 50-30-20 budgeting method which suggests that you spend 50% of your income on essentials, save 20%, and leave 30% of your income for discretionary purchases.