AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Percentages for household budget4/18/2024 Let’s face it, you need time to relax and do things simply for the fun of it. Plan on allocating five percent of your budget for these items. This category includes them and things like gifts or that new clothing item you are looking at. There are things like cleaning supplies and personal hygiene items that don’t fit nicely into other categories. Personal (for everything that doesn’t fit nicely) If you keep a separate category for insurance, plan on ten percent. These include home, auto, and health insurance. There are several types of insurance you may need to pay each month. Set aside five percent of your budget to cover the costs in this area. This category includes co-payments and medications that aren’t covered by insurance. If you routinely walk or bike, the percentage can be greatly reduced. Ten percent of most budgets go to these things. Transportation includes anything related to a personal vehicle, taxi or bus fare and parking fees. For many others, five percent is plenty to cover eating for the month. For those on special diets, the percentage might need to be increased. On average, ten percent of your income can reasonably be allocated here. Food & Groceriesįood is another category that varies widely depending on your circumstances. Five percent of your budget should be assigned to this category. Utilities include electric, gas, water, sewer, internet, and telephone. This is one area of your budget that can be increased if you end up allocating less to other categories, such as insurance or food. Five percent of your budget should be set aside to reduce the amount of money you owe. Most of us have debt that we are trying to pay off. Many people, however, feel that thirty-five percent is a much more reasonable goal. Ideally, twenty-five percent of your income should go in this category. Housing, whether for rent or mortgage payments, is going to take up the largest percentage of your income. Ten percent of your original budget is considered a fair percentage. By setting aside a percentage of your income for these things, you are able to know you have met your wish yet at the same time not spent money you need for other areas. Giving and tithing are important things to many people. Use these numbers as a base guideline and tweak to fit your personal situation. The couple may need to spend more on insurance or may be able to put a higher percentage in savings. For example, a single mother of three kids is likely to spend a higher percentage of her income on rent and food than a couple who both work and have no kids. Your individual situation will determine your priorities, which will vary from the next person’s priorities. The following percentages are based on the average spending rate of people. When looking at the following percentages, you may think that one or two categories don’t apply to you or that there is something else you need to have included. When following these rules of thumb, it is less likely that your budget will be derailed by allocating too much for one expense and not enough for another. These were determined over time to reflect what a person can reasonably expect to pay for certain things. Household budget percentages refer to the portion of your monthly income that is set aside for each expense covered by your budget. What Do We Mean by ‘Household Budget Percentages’? Knowing how much money to allocate for certain expenses can be confusing if you have never had a budget in the past. By taking charge of how and where to spend your money, you enable yourself to control your money, rather than your money controlling you. What are the Most Common Household Budget Percentages?įollowing a budget is like a combination of a financial roadmap and peace of mind.
0 Comments
Read More
Leave a Reply. |