No matter how much you’re setting aside, I guarantee you still don’t think it’s enough. And it probably isn’t – at least, not for your liking. Truth is if you thought you were on the right track, you wouldn’t be here. There is no set amount you should be putting away, but here’s a cool formula (based on your income after taxes) to get you started.

• Spend no more than 50% of your income on NEEDS
• Put 20% aside as SAVINGS
• Spend the remaining 30% on WANTS

Needs include housing, food, utilities, insurance and transportation costs. Wants include things like cable TV, entertainment costs, unnecessary clothing and toys, such as iPods and sporting equipment.

Now, you’re probably sitting there looking at your current budget and worrying that it doesn’t even closely resemble the one outlined here. Don’t worry about it. This is just a loose guideline to help you reshape and better balance your budget.  There’s no better time to start than today!