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A personal budget doesn't have to be complex

Harry says sets limits for how much to spend for food and housing and you'll be off to a good start.

DEAR HARRY: I just graduated from Penn State, and I have a good job lined up. I was lucky enough to have parents who supported me through my years away from home. I did have summer jobs that gave me spending money. My parents have just told me that I will be "evicted" after Labor Day. My dad told me to create a budget now so I'll be able to manage my money effectively. I'm not even sure of what a budget entails. Help!

WHAT HARRY SAYS: Too often, we are put off by a single word. A budget is not a straight-jacket - it's a spending plan. By now, you should have calculated what your monthly take-home pay will be. With your parents help, lay out what your prospective expenses will be for everything except your new living quarters. That will give you an idea of what you can afford for rent and related costs. There are many guidelines available with suggested percentages of income you should set aside for most needs. There are only two percentages I would suggest: Keep your housing costs under 30 percent of your take-home pay and your food costs under 10 percent. Try your very best to get money into savings for emergencies and retirement (even though you're probably under 25). And remember, a budget is a plan subject to adjustment to suit you. If you live beneath your means, you will have a good start toward a successful future. Good luck!

write to him at Daily News, 801 Market St., Philadelphia, PA 19107.