Have you sat and thought about how much of your wages you spend on different things?
I'm sure most people interested in reducing debt and living frugally have a budget. What I was wondering is what percentage of your pay do you allocate to various things?
There are many different alternatives and of course what works well for some people might not work well for others. In my opinion it also depends how much income you bring home to start with; for example, a third of your wages for rent/mortgage payments might sound reasonable, but the average rent in Cornwall (£699 per month) is around 50% of the average take home pay (£1385 net per month).
Last month I spent:
19% on housing (set rate)
12% on bills (set rate)
10% on basic living costs like fuel and some food (fairly set)
15% on wants like entertainment and non-vital purchases (have been spending more than my target lately :-/)
and 44% was savings, both for an emergency fund and for annual expenses like car maintenance.
I am living with my parents for a year after graduating university. It's not glamorous, but it is allowing me to spend that third of my wages on both rent AND bills combined. I'm sure this report would look a lot different this time next year, when I will hopefully be back at Uni!