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Question for the Money Doctors

Question submitted on Apr 26, 2010.

Question

I wanted to know what is recommended as an appropriate personal spending budget? My husband and I disagree on the amount and would like to set an amount we are each permitted to freely spend each month on "junk" items such as sodas and Starbucks.

Answer

It depends..

have you done a current monthly cash flow?

by that I mean..how much comes in..and what goes out..on a monthly basis.(your expenses). I do think that before you decide on what you can "freely spend"..you need to do an accounting..what you HAVE to spend..and don''t forget..YOu need to be saving something too.!!

Remember the line...PAY YOURSERLF FIRST..start with 10 % of what is coming in...then after you do your cash flow analysis...see what is left..and then decided how much you can "freely spend"


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