Money Minute: Monthly budget

Money Minute: Monthly budgetMoney Minute: Monthly budget

Right now, many people are spending 33.7% of their paycheck on housing, according to Attom, a company that tracks real estate analytics. For context, housing lenders want you to spend 28%.

“When you think about your monthly cash flow and affordability, it’s great to spend no more than 28% of your monthly income on home costs,” said Becky Krieger, a managing partner with Accredited Investors Wealth Management.

This leaves enough paycheck to cover those other debts, which Krieger says should be no more than 33% of your paycheck.

“You have to think about what does it cost to maintain your home? You may have an auto loan payment, you may have student loan debt, you may have other credit card debt,” Krieger said.

That leaves you with money for daily life and savings. Krieger says sticking to these budgets will give the extra cash when it’s needed.

“You really need to take a holistic view,” Krieger added.

No matter what you do, set that budget and do your best to stick to it.
The post Money Minute: Monthly budget first appeared on KSTP.com 5 Eyewitness News.