The word “budget” makes many a shopping fanatic shudder. But it doesn’t have to be that way. Enter the Little Budget Diary, a new spin on the LBD, coined by author and media personality Nicole Lapin. In her guide to all things money, Rich Bitch, Nicole schools us on how to empower ourselves financially.
The objective? Getting what we want out of life, whether it’s a hefty retirement account, a dreamy vacation, or the ever-versatile little black dress. And better yet, all three. So if you’re wondering how to divvy up your cash flow and meet your goals, look no further.
The Essentials
The largest chunk of your budget, 70%, extends beyond just food and shelter. Think of these as all of your obligatory expenses (and no, that fancy gym membership doesn’t count): utilities, groceries, transportation, insurance, and, of course, housing. Ideally, your rent or mortgage should eat up at most 35% of your paycheck.
The Endgame
The next segment, 15%, is all about your future. These dollars address your long-term goals, from investing and retirement accounts to saving up for a home or child. While it might not be glamorous to put away right now, it will be when you’re jet-setting around the globe during those golden years. A girl can dream, right?
The Extras
Finally, we come to the fun stuff. Reserve another 15% of your cash flow for the purely indulgent purchases. Maybe it’s finding your Zen at a boutique yoga studio, or perhaps it’s feeding your accessory collection. If it puts a smile on your face, this is the dough you set aside to enjoy it.
By Susie Kostaras, Managing Editor
