Bangalore: For many of us money is necessary and an integral requirement for future. Understanding how much to spend on a daily basis is key to making positive changes to one’s finances. How often have we noticed this, when income flows in and we are left clueless of how to manage our finances or even prioritize our income. We make budgets to know where our money is going, to find out money leaks, and change financial habits.

Let's take a look at the popular money ratios and see which ones are worth buying into and which ones is total drivel.

30 Percent of Income Goes in Housing

The monthly cost of housing and this includes rent and mortgage, should comprise less than 30 percent of your income. You should know that if you are spending too much on housing, you’re probably not living an economically-sustainable lifestyle. Following this division will keep you in line and make sure you don't run out of money when it comes to buying groceries, paying bills, and generally living your life.