How should you divide your paycheck between saving and spending to create a sound budget??

A good rule of thumb to deal with your after tax take home pay would be the following:

50% needs and essential purchases, no more than 30 percent on a mortgage or rent

30% wants or stuff that you enjoy

20% savings  that you could divide this between your 401k and bank savings account

 

You need to fill in the details but this would give you a sound plan to begin creating wealth.

Source: Businessweek