![]() ![]() You will have to make adjustments in your budget if that is the case. Remember these are ranges and if you are on the higher end for each category, it will be over 100%. In general the recommended amounts for certain categories are: It can help you make adjusts if needed in your spending habits. What is good about determining your percentages is that you can see if a category is way out of line and needs to be adjusted. If you have no clue what a zero-based budget even is, start with this Budgeting for Beginners: A Step-by-Step Guide. If you are doing a zero-based budget month-to-month and sticking to it, that is the most important factor for your financial success, not percentages. In the grand scheme of things, it is a small detail in your big plan. It’s also important to not stress about the percentages month to month. It’s important to keep in mind that when it comes to your budget and percentages, that it may not be exact. There are general recommended household budget percentages and there are also Dave Ramsey budget percentages. The more you break it down the easier it will be to stick to because you will remember a lot of little things that you often forget. These categories are very broad and can be broken down even further for your personal needs. It is your preference on how you want to calculate it.įor me, my house insurance is covered in my mortgage payment, so it is included in housing costs. ![]() Some people include house and vehicle insurance in those main categories. This can include your buffer for your checking account Miscellaneous– this category is for little things you forgot or that don’t fit into another category.Insurance– health insurance, vehicles, housing, life, and disability (you can include house and vehicle insurance in the other categories).Healthcare– includes everything except your insurance premiums, your copays, medications, and doctor bills.Entertainment– anything you do for fun, including kids sports and activities, gym memberships, concerts, and vacation.Savings– saving for emergencies and retirement. ![]() Giving- this includes tithing or giving to charities.Utilities– power, water, sewer, trash, internet, and phone.Personal Spending– clothing, hair and nails, decor, massages,.Transportation– all costs including car payment, taxes, public transportation, maintenance and storage/parking fees.Food– groceries, fast food, and eating out.House costs– rent/mortgage, maintenance fees, taxes, and HOA fees.However, all those little categories typically fall into more general categories.Īlso check out this list of 100+ budget categories. If you live in Canada’s far north or in a city where homes are very expensive, you may have to cut back more than an average Canadian would in the “Food” or “Housing” categories in order to afford your higher living costs.When making a zero-based budget, you may have a lot of different categories just so you can keep all of your expenses accounted for. ![]() Spending more in one category may mean that you’ll have to cut back in another category to make your budget balance. Life is all about choices, but you can’t choose the maximum amount in all spending categories. These guidelines are only recommended ranges. You may also notice that if you spend the maximum amount in every category, you’ll exceed 100% of your income. It’s important to know there is nothing wrong with exceeding this limit as long as your budget balances (your expenses don’t exceed your income). However, if you happen to have young children in daycare, have high education costs, take nice vacations, tithe, or have hobbies or recreational interests that aren’t cheap, you’ll quickly exceed the suggested maximum for this category. The guidelines suggest you spend 5 – 10% of your income in this category. The category in these guidelines that people will most commonly exceed is the “Personal & Discretionary” expense category. Don’t rely on credit for these unexpected expenses. You’re allocating some money towards savings (savings are absolutely necessary for life’s many unexpected expenses.You’re not spending more than you earn, and.If finances aren’t strained in your household, you can choose to be more relaxed and go beyond the guidelines in areas as long as you’re careful to do two things: These guidelines have been created for someone who really needs to put together a tight budget. How to View These Budgeting Guidelines to Get a Hold of Your Spending Habits ![]()
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