How much of your income should go to each thing?
The published line for each big part of a budget, as a share of income, with a page on each that works it out in dollars.
Checked October 26, 2026
| Thing | The line | Measured on | From |
|---|---|---|---|
| Rent and housing | Up to 30% | Income | HUD, via the Census Bureau |
| A car, all costs | Up to 10% | Pay before tax | The 20/4/10 rule (Chase) |
| Retirement | 15%, match included | Pay before tax | Fidelity |
| Short-term savings | 10% | Take-home | Fidelity |
| All must-haves together | Up to 60% | Take-home | Fidelity |
| Groceries, internet | No published share | See their pages for dollars |
Each one, worked out
- What percentage of income should go to rent? 30% is the line the government uses. What households really spend, and the math for two incomes.
- How much should I spend on a car? The 20/4/10 rule, and what a car really costs a year once gas and insurance are in.
- How much of your income should you save? Two published plans, side by side: 10% to 25% of take-home, plus retirement.
- How much of your paycheck should go to retirement? 15% of pay before tax, with the match counted, and the 2026 limits.
- How much should I spend on groceries a month? The USDA's food plans for one, two and four, and what households spend.
- How much should I pay for internet? The national average plan price, the spread by state, and how to pay less.
Why the lines don't simply add up
Each line comes from a different body and is measured on a different number: some on pay before tax, some on take-home. Rent at 30% of gross can be 40% of take-home. Use them as checks, one thing at a time, and the published plans (budget rules) for the whole.
Questions people ask
How should I divide my income?
Two published plans divide take-home pay. Fidelity: no more than 60% for must-haves, 30% for wants, 10% to short-term savings, and 15% of pay before tax for retirement. Ramit Sethi: 50% to 60% fixed costs, about 10% investing, 5% to 10% savings, 20% to 35% guilt-free.
What is the biggest part of most budgets?
Housing. In 2024 it was 33.4% of what the average U.S. household spent, then transportation at 17% and food at 12.9%, per the Bureau of Labor Statistics.
Sources
5 sources · read October 26, 2026
Every number on this page comes from fidelity.com, iwillteachyoutoberich.com, census.gov and 2 more. If a source has changed since, the source is right.
- 1Fidelity: Fidelity's easy budgeting guideline (January 5, 2026)fidelity.com
- 2Ramit Sethi: Conscious Spending Basics (updated December 14, 2024)iwillteachyoutoberich.com
- 3U.S. Census Bureau: Nearly Half of Renter Households Are Cost-Burdened (CB24-150, September 12, 2024)census.gov
- 4Chase: What is the 20/4/10 rule for car buying?chase.com
- 5U.S. Bureau of Labor Statistics: Consumer Expenditures, 2024 (USDL-25-1586, December 19, 2025)bls.gov
Wonderful gives general information. It isn't a financial or tax advisor.