How to Budget a $7,500 Salary Using the 60/20/20 Rule
If you earn $7,500 per month, figuring out how to divide that income can feel overwhelming. The 60/20/20 budgeting rule offers a simple, proven framework to manage money wisely — covering your needs, growing your savings, and still enjoying life.
60% for Fixed Costs — $4,500/month
This portion covers your essential expenses — the bills you can’t skip — plus a miscellaneous buffer for unexpected costs.
Example Breakdown:
- Rent or mortgage: $2,000
- Utilities & internet: $200
- Groceries: $600
- Car payment & insurance: $600
- Health insurance: $300
- Subscriptions (phone, streaming, etc.): $214
- Miscellaneous (15% of fixed costs): $586
Total: $4,500
Budgeting Tip: The miscellaneous fund helps cushion surprise expenses like repairs, gifts, or medical co-pays without disrupting your budget.
20% for Savings & Investments — $1,500/month
This is the money that helps you build wealth and financial security:
- 401(k) or IRA contributions
- Brokerage or index fund investing
- Emergency fund savings
Pro Tip: Automate savings right after payday so it happens without effort.
20% for Fun & Lifestyle — $1,500/month
This is your guilt-free spending bucket — the part of your budget that keeps life enjoyable:
- Dining out, coffee, takeout: $500
- Entertainment: $600
- Shopping or hobbies: $400
Smart Habit: Budget for fun so you can enjoy today while staying on track for tomorrow.
Example Breakdown
| Category | % of Income | Monthly Amount | Example Expenses |
|---|---|---|---|
| Fixed Costs | 60% | $4,500 | Rent, groceries, bills |
| Savings & Investments | 20% | $1,500 | 401(k), brokerage, emergency fund |
| Fun & Lifestyle | 20% | $1,500 | Dining, travel, hobbies |
SmartSpendr Tip:
Want to know how your income fits the 60/20/20 budget?
Try our free Budget Split Calculator to visualize your spending and savings plan instantly.
Get FREE Personalized Budget Template – SmartSpendr.io