Wellness Tip on Money: Divvy up your take-home pay according to the 50/20/30 principle.Essential Expenses No more than 50% of your take-home pay should go toward Essential Expenses, which are the expenses you need in order to maintain the fundamentals of your life: shelter, food, heat, etc. Only four expenses go in this category: housing, transportation, utilities and groceries. Financial Priorities At least 20% of your take-home pay goes to Financial Priorities, which are the goals that are essential to a strong financial foundation. These include your retirement contributions, savings contributions and debt payments, if you have debt. You should make these contributions and payments after you pay your Essential Expenses, but before you do any other spending. Lifestyle Choices No more than 30% of your take-home pay should go to Lifestyle Choices, which are personal, voluntary and often fun choices about how you spend your discretionary income. They often include cable, internet and phone plans, charitable giving, childcare, entertainment, gym fees, hobbies, pets, personal care, restaurants, bars, shopping and other miscellaneous expenses.

7 Steps to Help You Have More Money This Year: "You’ll be able to see how much of your paycheck should be allotted toward your essential expenses (like rent), fun lifestyle expenses (like vacations or spa treatments), and priority goals like saving or paying down debt. Knowing how much you have to work with within those parameters can serve as the framework for other major money decisions for the year."

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