This is why YNAB (You Need a Budget software) is such a roaring success. There are 4 rules. Rule number 1 is, give every dollar you have in this cycle a job. Much will be set aside for housing, transportation, utilities etc. After the usual "nut" expenses, it gets interesting. Do I set aside a budget for entertainment, travel, new computer, home repair, auto repair, extra debt repayment, general savings or investments? You get to decide According to this article, if you save money (or pay extra on debt) this cycle, it tends to repeat into the next cycle. If you don't, you'll probably find excuses not to save the next cycle, also.