👉 Spending math involves calculating how much money you need to cover your expenses while ensuring you have enough for savings and emergencies. Start by listing all your monthly fixed expenses (rent, utilities, loans) and variable costs (groceries, entertainment). Subtract these total expenses from your total monthly income to determine your disposable income. Allocate a portion of this for savings and debt repayment, aiming for at least 10-20% of your income. Then, consider a buffer for unexpected costs, allocating an additional 5-10% of your income. This approach helps maintain financial stability and flexibility.
