@goose231,
Thanks so much for your question! Any budget you make will be tailored fit to you – the things that are necessities for some are luxuries for others, and not all of the categories below will apply. However, I know it can be a bit daunting to get started, so having some general guidelines for categories can certainly can help.
Here’s USAA’s take on some percentages to help you get started – The ranges exist for your situation, but it can’t add up to more than 100% 😊
Saving 10-15%
Housing 25-36%
Food 10-15%
Auto expenses 10-15%
Gifts/Charitable Giving 5-10%
Child Care 5-10%
Medical/Dental (co-pays, deductibles 5%
Insurance (Health, Dental, Life, etc) 5%
Debts 5%
Personal Care/Clothing 5%
Entertainment 4-6%
Miscellaneous 4-7%
Total 100%
I also wanted to include a couple of keys to a successful budget:
1. Pay yourself first - One of the most important things you can do is set aside savings first and then live off of what is left, not the other way around.
2. Use it! Keep it up to date and adjust as needed - Follow and track your spending each month to make your budget pay off.
3. Think before you spend - Build in some fun. Avoid breaking your budget by allowing some room for reasonable, guilt-free spending.
4. Make it a team sport - If you have a spouse or partner, be sure you are playing for the same team by discussing your game plan. You are more likely to stay within your budget each month if you do.
5. Don’t give up – If you get off on a month, adjust your plan and get back on track. The results of your hard work should really pay off over time.
A final note – the best budgets are ones that help you make positive decisions going forward – not so much blaming what has happened in the past (wither blaming yourself or a partner). Knowing were you came from and your old spending patterns can certainly help, but the goal is to do less tracking backwards and instead enable better decisions in the future.
Good luck!
-Matthew
