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Percentage of take-home pay
allotted to each budget category
(Percentage
Guildelines)
| Budget Category | Monthly Take-home Pay |
| |
$1 - $1,499 |
$1,500 - $2,499 |
$2,500 - $2,999 |
$3,000 - $3,499 |
$3,500 & up |
| Housing |
38% (.38) |
35% (.35) |
35% (.35) |
35% (.35) |
35% (.35) |
| Transportation |
15% (.15) |
15% (.15) |
12% (.12) |
12% (.12) |
12% (.12) |
| Food |
15% (.15) |
15% (.15) |
12% (.12) |
12% (.12) |
10% (.10) |
| Entertainment |
3% (.03) |
5% (.05) |
5% (.05) |
5% (.05) |
6% (.06) |
| Clothing |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
| Medical/Dental |
5% (.05) |
5% (.05) |
4% (.04) |
4% (.04) |
4% (.04) |
| Miscellaneous |
5% (.05) |
5% (.05) |
7% (.07) |
7% (.07) |
7% (.07) |
| Insurance |
4% (.04) |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
| Education/Child Care* |
10% (.10) |
8% (.08) |
6% (.06) |
5% (.05) |
5% (.05) |
| Debt Payments ** |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
| Saving |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
5% (.05) |
| Investment |
0% (0) |
0% (0) |
5% (.05) |
5% (.05) |
6% (.06) |
These
percentages
are for an ideal budget. Since it is nearly impossible to
have a
perfect, ideal budget, these percentages should be used as a guideline
or starting point. If your actual spending in any category
is
significantly higher than what is given here, then you may be
overspending in that category. Significant overspending in
any
category makes it difficult to stay within your budget which will
likely lead to eventual financial difficulty.
* If you have education or child care expenses, you must deduct the
percentage given for this category from other categories so that all
percentages add up to 100%
** When you pay off all of your debt (not counting your mortgage) and
your debt payments become zero, you may add this percentage into other
categories as desired.