What percentage of paycheck should one keep for oneself?

You should set aside 20% of your income to build a saving cushion. However, try to increase your income so that you can build an emergency fund. Remember, you should save 5-6 months of income in an emergency fund to avoid debts.

If by saying yourself you mean how much you can splurge, then it shouldn't be much. At first, you need to save, save for emergency fund and then keep for yourself. And, it's not mandatory that the amount, 20% or 30% you're keeping for yourself, you need to spend that. What I mean to say is don't spend forcefully if you don't have anything to spend on. Instead, you can save the amount and maybe spend in the next month, when you need to.

1. Allocate 20% of your income for savings.


2. Allocate 50% of your paycheck for necessities


3. Allocate 30% of your paycheck for discretionary items

Initially 20% will be good, but gradually it is better to make it atleast 30%