How to Change Your Spending Habits when Your Salary Goes Up (or Down) I struggle with Ramit's percentage-based automation. Not everything can be boiled down to a percentage; most bills are fixed, like rent. If my income goes down 20%, I can't just allow my automatic allocation to bills go down with it; I have to make sure it still covers my fixed bills. That then has a ripple effect on the rest of the percentages in the budget. For example, assuming I make $50k/yr, and my fixed bills are $1,500/mo, that amounts to 36%, leaving 64% for the rest of my budget. But then say my income drops to $40k. And the idea of allocating a set percentage of income toward savings doesn't take into account your specific goals and their timelines.
I'm not trying to criticize, because I really want to be able to put my finances on autopilot, but when I sit down to actually do it, I just don't get it. How do you even choose your percentages from the start? Negotiate It Connects You with Customer Service and Provides a Script for Lowering Monthly Bills. Fonolo.com - Try it out! Complaints Board. LucyPhone.com - Never Wait on Hold Again.