Life. Money Monday {Elements of a Budget pt.2}

Last time for money monday i wrote a little bit on examining what you are already spending. This time we will be looking at goal setting.


Setting goals needs to accurately reflect what you are capable and willing to do in your spending. There have been a few times when i was a little zealous on cutting back and just couldn't keep up. This can be discouraging. The following are categories that Dave Ramsey (my financial hero) uses to describe how much you should be spending and where. Remember that their isn't one fix all. Depending on your income level and location your figures will probably look different, but this should give you a ballpark of what is reasonable in every area.

Expenses

    Range

Charitable gifts

    10-15%

Saving

     5-10%

Housing

    25-35%

Utilities

     5-10%

Food

     5-15%

Transportation

    10-15%

Clothing

     2-7%

Medical/Health

     5-10%

Personal

     5-10%

Recreation

     5-10%

Debts

5-10%