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Budgeting Tips to Fit Your Income Bracket

Posted In:  banking

There are no "one size fits all" solutions when it comes to saving money. Depending on your income level and financial goals, your budgeting methods will change. People in lower income brackets need to focus on saving money for emergencies and avoiding debt, while people with higher incomes need to plan for retirement and protect their assets. By matching your budget to your income, you can fulfill your needs and make the most of financial advice.

Under $22,000 a Year

At the poverty level, most people struggle to make ends meet from one check to the next. Living expenses are often equal to monthly wages, and any unexpected expense can snowball into a financial disaster. In order to save money at the lowest income brackets, it's important to budget every penny and focus on putting aside any money that you can to help offset the cost of emergency expenses.


  • Keep track of all of your expenses to reduce your risk of over-drafting your bank account
  • Cut as many unnecessary expenses from your budget as possible
  • Focus on saving small amounts of money at a time to build an emergency fund
  • Take advantage of state assistance that you might qualify for, such as food stamps, to help reduce the stress on your budget
  • Brainstorm possible ways to increase your income, such as a second job or lucrative hobby

$22,000 to $60,000 a Year

Families with a middle-class income face the challenge of living within their means. Although they have more money than people at the poverty line, they usually have more expensive lifestyles to maintain, and it's likely that people in this income bracket have substantial debt. At this income level, saving money for the future should be your top priority.


  • Pay down as much debt as you can before you start trying seriously to save
  • Avoid accruing new debts and guard your credit carefully
  • Carefully consider all purchases and hunt for bargains; just because you can afford the high-priced item doesn't mean it's the best choice
  • Consider investing in high-yield CDs or other safe investments as a way to grow your savings
  • Set up a 401(k) or IRA and begin making regular payments; if your employer matches payments, consider making the maximum contribution so that you will get the most assistance

$60,000 or More

People with higher income levels usually own their own homes and may already have other assets. Living expenses no longer pose a major concern, but safeguarding and growing wealth should be the top priority of these individuals. It's too easy for people with higher incomes to live in the moment and forget about their futures, but securing both retirement and a comfortable life for your children should be goals at this stage.


  • Keep an eye on debt; you can float more credit than other incomes, but you don't want to be stuck with that debt forever
  • Work on ways to manage and grow your assets so that they can continue generating money
  • Maintain appropriate levels of insurance and consider purchasing an umbrella policy protect your assets
  • Considering hiring your own accountant to help manage your investments

Income levels are fluid, and people can move between them throughout their lives. It's important to always keep an eye on your income and assets and adjust your budgeting strategies accordingly. The key is to match your lifestyle to your income and always live within your means, avoid unnecessary debts and put aside as much money as possible. This will help prevent financial difficulties caused by unforeseen disasters and help create a sense of comfort and security.

Jessica Bosari is a freelance writer and blogger for various publications and her own blog. You can read more of Jessica's work here. If you have any comments or questions about or about saving money, leave your comments in the form below or email Thanks!


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