Financial Expert Patricia Lovett-Reid, Senior Vice President, TD Waterhouse Canada Inc. is here to help (sponsored by TD Waterhouse).

Q: If you could break my paycheque down into percentages, how much should I realistically be putting aside for savings and the rest on food, shelter, transportation and entertainment/personal?

A: As a general rule, about 40% of your gross income (before taxes) should accommodate your monthly debt expenses such as a mortgage payment, rent, condo fees, heating and property taxes. Minimum payments on your loan, credit card or line of credit should also be included.

The other 60% should be comprised of taxes, food, savings, insurance and other personal expenditures. I suggest that a savings of 10% of your gross income is appropriate; however, the amount that you save depends on the choices you make and on your priorities. Therefore, you should make a list of what is important to you, and then make your decision from there.

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