How I Handle My Money- The Basics

One of the best things I have ever done I learned at a workshop and that's how to separate my money. I set up five accounts.

1. Necessities= 60% mortgage, food, gas, electric
2. Education= 10% classes, seminars, books
3. Long Term Savings=10% investments
4. FO fund=10% aka emergency fund or when I finally decide to quit my job fund.
5. Play=10%!

I have deductions scheduled the day after my paycheck hits and it's sort of the no brainer way to budget for me. I also contribute to my 401K but I don't include that because it's pre-tax so I break down my paycheck after that money is out. I need to put more into my 401K so one of my goals is in September to start increasing it by 1% each month until I max it out. I am also putting any found money (bonuses, economic incentive checks, ebay sales) into my FO account.