Recent Divine Discussions

Thursday, May 3, 2007

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?

5 comments:

D.C. said...

Right now my budget looks like a hot ghetto mess. :O)

Dimples said...

LMAO. That was hilarious. But at least you have one. ;-)

MarketRMan said...

Saving someting is better than saving nothing...also to d.c. "hot ghetto mess"....i like that. In fact, I may have to steal that one :o).

Dimples said...

LOL. Yall are silly. And yes saving something is definitely better than zero.

MarketRMan said...

Dimps...you need a picture of you on this site...it will help personalize your blog more...a wise person once told me that people like to know the person whose blog they are reading...just kidding, no wise person would say that or they'd lose their credibility...but for real - a blog without a picture is not a happy blog.