KEEP your fixed cost under 60% of your income #personalfinance #money #debtfreejourney
11 Feb 2023 · 0 min
0:27
A short clip of Ramit Sethi advising viewers on managing personal budgets: he diagnoses that a household's fixed costs are 151% of their take-home pay and states his rule-of-thumb that fixed costs should be 50–60% of after-tax (take-home) pay. The clip highlights that the household is spending more than they earn on fixed costs alone and therefore their fixed costs are too high.
Questions this video answers
50 to 60% of take-home (after-tax) pay.
151% of take-home pay.
