Comments on: 10 Tips for Budgeting in the New Year http://www.goodfinancialcents.com/10-tips-for-budgeting-in-the-new-year/ Helping You Make Cents Of Investing and Financial Planning Wed, 08 Feb 2012 21:58:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Brucehttp://www.goodfinancialcents.com/10-tips-for-budgeting-in-the-new-year/comment-page-1/#comment-14826 Bruce Sun, 19 Jun 2011 19:42:21 +0000 http://www.goodfinancialcents.com/?p=10533#comment-14826 This was an interesting list of suggestions. I particularly liked that you gave a thoughtful opinion on credit cards; I think too many assume that they are dangerous and cannot be used effectively.I do have a question about one of your budgeting tips: "One third of your wages should go towards your savings account. " I assume this refers to net income (i.e. after taxes and deductions)? In my own saving, I save in two main ways: long term (e.g. RRSPs (Registered Retirement Saving Plans - the Canadian equivalent to the 401k, I believe, or TFSAs [Tax Free Savings Account]) and short term [e.g. basic savings account]. The short term savings are likely to be used within a year.I'm also working on building up an emergency fund (in a savings account with a 3% interest rate).So, here's the question, of the 33% of one's income that is going to savings, what's the breakdown of that 33% into short term vs long term, savings account vs investments? This was an interesting list of suggestions. I particularly liked that you gave a thoughtful opinion on credit cards; I think too many assume that they are dangerous and cannot be used effectively.

I do have a question about one of your budgeting tips:
“One third of your wages should go towards your savings account. ”
I assume this refers to net income (i.e. after taxes and deductions)? In my own saving, I save in two main ways: long term (e.g. RRSPs (Registered Retirement Saving Plans – the Canadian equivalent to the 401k, I believe, or TFSAs [Tax Free Savings Account]) and short term [e.g. basic savings account]. The short term savings are likely to be used within a year.

I’m also working on building up an emergency fund (in a savings account with a 3% interest rate).

So, here’s the question, of the 33% of one’s income that is going to savings, what’s the breakdown of that 33% into short term vs long term, savings account vs investments?

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