How You Should Be Spending Your Money, According to a Financial Planner

iStock
iStock

It would be nice if financial rules of thumb applied to everyone equally, but that's often not the case. People in different income brackets have different priorities, which is why telling everyone they should be spending a flat percentage of their income on necessities like food, housing, and transportation doesn't always make sense. In his book Rules to Riches, financial planner Mark Baird accounts for this variation by adjusting the common percentage guidelines based on income levels, as CNBC reports.

In some spending categories, the rules stay the same no matter how much you're making. Baird recommends that every household earning between $25,000 and $300,000 annually save or invest 5 to 20 percent of their income each year, for instance.

Other financial areas have more variation depending on how much money you're bringing in, though. If your income is $25,000 a year, Baird says you should be spending 18 to 23 percent of your earnings on housing. But if you make $50,000 or more, you should aim to spend 15 to 20 percent. In general, people earning lower salaries should set aside higher percentages of their income for food, clothing, transportation, and medical bills, while those earning more money should plan to spend more of it on taxes, insurance, and charitable donations.

As is the case with any spending-related guidelines, these recommendations shouldn't be taken as law. The money you put toward housing, taxes, and transportation will vary depending on where you live. If costs are especially high for one bill, see if you can cut spending in another part of your life. It's not the end of the world if you spend slightly less on charitable contributions than Baird recommends.

Check out the guidelines for households making $50,000 a year below. You can head over to CNBC for the full chart.

Taxes: 20 percent
Charitable Contributions: 10 percent
Savings and Investments: 5 to 20 percent
Housing: 15 to 20 percent
Transportation: 8 to 10 percent
Food and Beverage: 6 to 10 percent
Clothing: 3 to 5 percent
Furnishings: 2 to 4 percent
Personal Care and Cash: 3 to 5 percent
Medical and Dental: 3 to 5 percent
Insurance: 6 to 8 percent
Education and Self Improvement: 1 to 2 percent
Installment Payments: 3 to 4 percent
Entertainment, Dining, and Gifts: 1 to 3 percent
Vacations and Holidays: 2 to 4 percent
Miscellaneous: 1 to 2 percent

[h/t CNBC]

The 20 Best States for Singles

monkeybusinessimages, iStock via Getty Images
monkeybusinessimages, iStock via Getty Images

Being single on Valentine's Day means you don't have to worry about cards, gifts, or date ideas. But if you'd like to do something romantic on February 14, your chances of snagging a date in time may depend on where you live. WalletHub crunched the numbers to create a definitive list of the best states to be single and looking for love in America.

To come up with its rankings, the personal finance site analyzed numerous data points for each state, including the proportion of single adults, nightlife and entertainment opportunities, and economic factors like cost of living. Combined, these qualities paint of picture of where you're most likely to find, afford, and enjoy a date.

Florida secured the number one position with a total score of 69.21 out of 100. Though it comes in 33rd out of the 50 states for economics, it places third for dating opportunities and fourth for romance and fun, earning it the top slot. It's followed by California with a score of 67.41 and Texas with 66.77. You can check out the top 20 states below, and see how all 50 states ranked at WalletHub.

  1. Florida // 69.21
  1. California // 67.41
  1. Texas // 66.77
  1. New York // 65.29
  1. Pennsylvania // 64.61
  1. Ohio // 63.10
  1. Illinois // 62.61
  1. Wisconsin // 61.13
  1. Massachusetts // 59.11
  1. Michigan // 58.56
  1. Arizona // 57.22
  1. New Jersey // 56.71
  1. Georgia // 56.11
  1. Colorado // 56.01
  1. North Carolina // 55.58
  1. Minnesota // 55.42
  1. Virginia // 54.98
  1. Washington // 54.76
  1. Missouri // 54.29
  1. Nevada // 53.64

The world uses Valentine's Day to celebrate romance, but you can take it as an opportunity to embrace singledom in 2020. If that's your plan, here are some vintage tips for living alone to keep in mind.

Keep Your Food and Wine Fresh for Longer With These Vacuum Lids

Equilibric
Equilibric

Despite how carefully you try to store your leftovers, most plastic containers aren't airtight, and oxygen is often the culprit behind why food and wine lose their flavor or spoil so quickly. But Equilibric is looking to solve this issue with their Freshly! vacuum lids, which they say can keep food fresh for five times longer than standard plastic containers.

The company just launched a Kickstarter campaign for the Freshly!, which you can back starting at $69. With this pledge, you'll receive three lids of different sizes, a wine seal, and the handheld vacuum used to give your food a proper seal.

The product is easy to use: Simply put the lid on whichever container you wish to seal, attach the vacuum to the air valve, press the button on the vacuum, and your food is ready to store in a matter of seconds. When you’re ready to eat, open the air valve, remove the lid, and enjoy.

When air comes into contact with your food, it can promote the growth of both mold and bacteria. Similarly, when air comes into contact with your open bottle of wine, it can kick off a process called oxidation, which is why your vino can taste flat after it's been opened. But when you use a Freshly! lid, you’re storing your food or drink in "an oxygen-less environment."

The dishwasher-safe lids are universal, so they don’t need to perfectly match the dimensions of the container you are trying to seal. The largest size measures 10 inches in diameter and it's recommended for large salad bowls, pans, and skillets; the medium lid is 7.9 inches in diameter and is best for standard-sized bowls and lunchboxes; and the smallest lid is 5.7 inches in diameter and is recommended for cups.

Vacuum-seal lids for food
Equilibric

According to the campaign, Freshly! lids can keep dishes like cooked chicken fresh for up to 10 days, whereas it only keeps up to five days in regular plastic containers. On average, about 30 to 40 percent of food is thrown out in America, according to the USDA. So, not only will you keep leftovers longer, but the lids can help reduce your annual food waste.

This isn’t Equilibric’s first time making equipment that helps make life in the kitchen easier. They launched a Kickstarter campaign back in March 2019 for the balanced bowl-colander hybrid that helps cooks save time and water.

The campaign has already made more than $70,000, surpassing its original $7000 goal, but you can still help bring this project to life until February 23 by heading here.

Mental Floss has affiliate relationships with certain retailers and may receive a small percentage of any sale. But we choose all products independently and only get commission on items you buy and don't return, so we're only happy if you're happy. Thanks for helping us pay the bills!

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