Are you creating a budget? If so here is a bit of assistance for some of you.
Percentage guidelines and categories allocate your income to the categories based on some recommended percentages. The categories and percentages are:
|
Suggested Range |
My House |
||
|
Charity - |
10% |
15% |
2% |
|
Saving - |
5% |
10% |
7% |
|
Housing - |
25% |
35% |
39% |
|
Utilities - |
5% |
10% |
12% |
|
Food - |
5% |
15% |
15% |
|
Transportation - |
10% |
15% |
6% |
|
Clothing - |
2% |
7% |
3% |
|
Medical/Health - |
5% |
10% |
5% |
|
Personal - |
5% |
10% |
10% |
|
Recreation - |
5% |
10% |
0% |
|
Debts - |
5% |
10% |
1% |
|
Totals of columns |
82% |
147% |
100% |
When you figure your pie, make sure your total adds up to no more than 100%. As I have said, a lot of households do this (spend more than they have coming in) so make sure you watch.
As you can see the guidelines are not going to work for everyone. What I spend on my mortgage exceeds the suggested % of my income that should be spent on housing. My recreation is a cross between my job and DVDs. My work has its own pie and DVDs are grouped in with my personal spending.
When making a budget, work with what works for you. Put things where they fit in your life. The above is suggested by what I call popular money managers. My input to their chart or list fell in line. My personal knowledge I break it down a lot more than they have in that I track insurance that is broken between medical auto and home. So use the guide but make you own pie that works with your situation.
Free Quicken Online automatically categorizes your expenses.
© 2008, Bruce Mc. All rights reserved.
