Many couples think that they are doing well if they live within their means. In reality, it’s vital that a couple keep daily expenses within 65 percent of their take home-pay. The other 35 percent needs to be reserved for retirement and taxable savings, large unexpected purchases, and gifts.
10 percent of a couple’s take-home pay should be saved toward funding retirement accounts.
An additional 5 percent should be saved for funding taxable savings.
10 percent can be put away for charitable gifts.
10 percent should be set aside for large purchases (those that cost more than one month’s take-home pay). Without budgeting for large expenses, a couple’s finances will be quickly swamped when the house needs a new roof or the car needs massive repairs. By putting aside 10 percent of your take-home pay each month, you can fund one large purchase every 10 months.