How Much Should You Really Be Spending?

Source: Springboard Non-Profit Consumer Credit Management (credit.org).

Expenses vary widely depending on where you live, but these ranges offer smart guidelines for budgeting your cash.

1. Housing
-% of Net Monthly Income: 35-45%

2. Auto and Transportation
-% of Net Monthly Income: 15-25%

3. Food
-% of Net Monthly Income: 10-20%

4. Monthly Installments (such as credit-card or loan payments)
-% of Net Monthly Income: 10-20%

5. Utilities
-% of Net Monthly Income: 8-15%

6. Medical (such as insurance premiums and prescriptions)
-% of Net Monthly Income: 8-15%

7. Personal (such as club dues and haircuts)
-% of Net Monthly Income: 5-10%

8. Savings/investings
-% of Net Monthly Income: 5-10%

9. Clothing
-% of Net Monthly Income: 3-5%


And why isn't tithing listed? Anyways, here is my current breakdown:

1. Housing : 21%

2. Auto and Transportation (car note and insurance): 21%

3. Food : 0% ----> Paid for by extra income (I'll post about this later)

4. Monthly Installments (such as credit-card or loan payments) : 23%

5. Utilities : 8%

6. Sweet Pea's Private School : 14%

7. Tithes: 10%

8. Personal (gas, fun, hair) : 0% ----> Paid for by extra income (I'll post about this later)

9. Savings : 3%

10. Clothing : 0% ----> Paid for by extra income (I'll post about this later)


My thoughts:

I don't believe in a perfect budget (unless you had no expenses and you could do whatever you wanted with your money.....then you would be living in a perfect world now wouldn't you ;-)).
I would however work on the following:

• Get those expenses down as low as possible.
• Increase income.
• Add some investments.
• Increase the cash flow going into savings.
• Bring in more extra income therefore increasing my "fun" money.
  
• Eliminate that debt.

What does your budget layout look like and what areas do you want to work on?