Ramit Sethi

insurance anything that's fixed even groceries every month that goes there and what about the minimum debt payment or is that part of another yeah yeah that's that counts there exactly okay and that number you should try to get it between 50 to 60 percent of your take home pay okay let me let me run through these all and then i'll tell you what they mean 50 to 60 of your take home pay for fixed costs

Next up, your savings.

How much money are you saving every month?

This should be roughly five to 10% of your take home.

And savings would be an emergency fund or money you don't need for at least one to five years.

Things like a down payment for a house, et cetera.

Next up would be investments.

Roughly 5% to 10% of take-home, although I like to see it higher because investing early in life pays dividends later.

You can do that.

Okay.

Well, I wish I started deadlifting when I was 13 years old, but I didn't even know what that was, you know?

So we all start from the place we start at.

That's true.

Okay.

The last category is my favorite one of all.

It's guilt-free spending.

And this is 20 to 35% of take-home payments.

What?

Yeah, that's right.

Desserts.