One of the hardest things to do when you're creating a household budget, is to try and see where your money is going. The first thing you need to do is track your spending and see where you are overspending.
The chart below shows what some budget category percentages should be, based on four different sources. Each source has a slightly different range and your budget will change based on your income and spending needs.
Category | Dave Ramsey | Typical Credit Counseling Advice | Consumer Credit Counseling Services | |
| Charitable Giving | 10-15% | 4% | -NA- | 10-15% |
| Housing | 25-35% | 24% | 20-30% | 30-40% |
| Utilities | 5-10% | included in Housing | 4-7% | included in Housing |
| Food | 5-15% | 14% | 15-20% | 5-15% |
| Transportation | 10-15% | 17% | 6-20% | 10-15% |
| Medical | 5-10% | 6% | 2-8% | 5-10% |
| Clothing | 2-7% | 6% | 2-4% | 2-7% |
| Invest/Savings | 5-10% | 13% | 5-10% | 5-10% |
| Debt Payments | 5-10% | 13% | 15-20% | 5-10% |
| Misc. (Personal,Recreation,Life Ins.) | 5-10% | 5% | 5-10% | 5-10% |
For example, a person with a lower income will have a higher percentage on basic needs than a person with more income, who may put more money into savings, recreation, or charity. Or, if you live in a more expensive area, you’ll spend more on housing, etc. Remember, these are only guidelines, you situation may call for numbers outside these percentages.
Coming in the next week or so, will be my own downloadable budget form for you to use, when planning your budget. For now, take a look at the budget guidelines, and as always, feel free to share your comments.
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