#Household budgets percentages free#

There are two main methods to kill debt, including: Paying off your debt helps you avoid financial trouble and living paycheck-to-paycheck. Keep in mind that this may require you to spend less in any budget category that you have the ability to make cutbacks in. He suggests you pay off debt as quickly as possible by paying as much as you can to your personal debt.Īnything that is not a mortgage should be paid off as soon as possible. How Does Debt Fit in Your Budget Categories?ĭebt is not found in Ramsey’s plan. If you manage follow just a few of the tips you might be able to save $500 per month with a little effort. Read our guide on over three dozen ways to save more money every month to increase savings. You want to assess your needs in all areas to streamline spending. Reducing costs in those areas frees up funds to apply to other categories. To stretch your spending, you want to find ways to lower your spending.įor instance, you may find that you’re spending too much on transportation or utilities. While simple to follow, there’s a lot that goes into the recommended budget percentages. Miscellaneous: This is a catch-all category for things that don’t fit well in another budget category. Personal: Expenses for personal care, like clothing or haircuts, go here. Anything you do for entertainment, from going to the movies, seeing a sporting event, or attending a concert, should go here. Recreation: We all need fun money, and this is where fun fits in. This can include co-pays, medication, or visiting the dentist. Health: Anything you spend for health-related needs goes here. This also includes any other kind of coverage you might need. Insurance: Car and home insurance go in their respective categories, but this is for disability, health, and life insurance. Don’t forget to include car maintenance expenses, gas, and auto insurance costs. Transportation: Regardless of whether you take the bus or drive a car, it goes in this category. Read our guide on how much you should spend on rent to learn more, assuming you don’t own your home. Regardless if you rent or own, you must determine how much is ok to spend and not negatively impact your budget. Home repair costs and maintenance expenses also fall into this category. If you pay property tax, HOA dues, or something else that is housing-related, it should go here. Housing: This is for your rent or mortgage payment.

#Household budgets percentages free#

Our free quiz can help you cut the cord on cable and pocket your savings. Utilities are easy to overspend on, so look for ways to save money.įor example, reducing how much you spend on cable is one way to save money. Utilities: This includes your cell phone, cable, internet, electricity, and gas. Basically, if it’s something your family buys to consume, it should go in this budget category. Read our guide on the best Roth IRA providers if you need to start saving for retirement.įood: This should include what you buy at the grocery store. Saving: Ramsey recommends saving ten percent of your income in a retirement account or 401(k). This may include anything from your place of worship to an organization that you want to support. Giving: You can give ten percent of your monthly income to a cause that’s important to you. Here is what you should include for each budget category. Making a budget is simple when you follow the suggested categories, but you may not know what to include in each section. Read our guide on Dave Ramsey’s baby steps if you’re struggling with your finances and want to get on track. It’s ok to add or remove categories and adjust your budget percentages depending on your unique needs.

You may want to include additional categories or remove several if they don’t fit your goals. Remember that each situation is different.