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THE 50-30-20 BUDGETING RULE

A good way to gauge whether you can live a comfortable financial life is to apply the 50-30-20 budgeting rule, in which 50 percent of income covers necessities, 30 percent covers discretionary items and 20 percent is for savings. From here, you can figure out whether your income is sufficient to cover cost-of-living expenses in your city. Anaheim, Calif.: $69,243 50 percent for necessities: $34,621

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