Since we tend to decide that it’s rude to talk about money with other people, it can be hard to figure out how to go from being broke to financially stable. This spreadsheet can help you explore the difference.


The sheet, from personal finance site Life and My Finances, lets you enter your monthly income, and then it automatically divides it into two budgets. The “broke” budget shows how that income might be divvied up in a typical budget that can leave you in a paycheck-to-paycheck lifestyle. The second one shows you a breakdown that allows for saving and reduces expenses.

A lot of what you’ll find reinforces what we’ve said before, like only spending less than 28% of your income on housing. However, seeing it in a fleshed out budget helps show where the sacrifices are made. The site also points out the benefit in buying older, paid-for cars rather than getting a car loan and putting that money towards savings. Once you’re done checking out the two given budgets, you can tweak the proportions in a third budget until you have one that’s balanced for you.


How Much Should You Spend On That? | Life and My Finances via Rockstar Finance