We all have a pretty good idea of how we should be handling our finances — spend less, save more.
But that’s easier said than done, and then there’s the tricky question of how much we should be saving versus spending each month.
A new spreadsheet from Life and My Finances, a personal finance blog, makes it easy. This downloadable sheet let’s you enter your monthly income and how much you’re spending on rent, utilities, clothing, food, transportation and other categories.
Then, using your information, the spreadsheet calculates two very different budget scenarios.
In the first scenario, called the “broke budget,” you’ll see how your income would be split up in a paycheck-to-paycheck lifestyle. In the second, more pleasant scenario, the sheet shows you a breakdown that maximizes savings and reduces expenses.
Even if you don’t end up following the “rich budget” breakdown exactly, the sheet is still helpful for analyzing your top spending areas, according to Lifehacker.
Of course, this is just one person’s opinion on how you should manage your finances, but the site recommends saving roughly 20 percent of your take-home pay each month and spending no more than a quarter of your monthly income on housing.