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DAVE RAMSEY BUDGET BREAKDOWN HOW TO
DAVE RAMSEY BUDGET BREAKDOWN FULL
DAVE RAMSEY BUDGET BREAKDOWN DOWNLOAD

Try to keep your mortgage or rent cost at around 25% of your take-home income.įor example, if your monthly household income after taxes is $5,000, then a good goal for your monthly mortgage payment or rent would be $1,250. BUDGET PERCENTAGES FOR BASIC LIVING EXPENSES RENT OR MORTGAGE: 25-35% Not to get too complicated here, but I also recommend that you keep another separate savings account, also referred to as a sinking fund, for expenses such as vacations, buying a new car, or making renovations or repairs to your home. When you are done, then focus on investing 15% of your income for retirement. When you have paid all your debts except your house, then focus on building up your emergency fund to 6-months of expenses. If you are following Dave Ramsey’s baby steps, which I totally recommend you do, then start by saving $1000 and then tackle your consumer debt. The recommendation is that you allocate 10-15% of your income for tithes, offerings, and gifts to charity. If you are familiar with Dave Ramsey, you know that he is huge on giving. Now that we have defined our necessities let’s get into the recommended budget percentages. I don’t want any teenager to grow up traumatized about their style! How Should You Allocate Your Income?

DAVE RAMSEY BUDGET BREAKDOWN FULL

If you are like me and have a closet full of clothes, but “nothing to wear,” you could probably eliminate spending on clothes completely.īut, if you have children that are growing like weeds, like mine, then, of course, it will be a necessity to allocate some money to keep them from wearing highwaters, especially if they are in high school. And finally, for clothing, I am talking about having the appropriate clothes for the season. It is not a necessity to spend hundreds of dollars financing a new car or SUV.

transportation, I am talking about covering your expenses for a reliable car and gas.

Those expenses should be treated separately in your entertainment spending category.

I am not talking about eating out at restaurants.

When I talk about food, I mean groceries that you buy at the store to make home-made meals and lunches.

When I say rent or mortgage, I am talking about having a decent place to live, not a new home with a pool and a finished basement, or a cool city condo that is out of your budget.

Now, le’s also set expectations on what is defined as “necessary” to live. You should cover these four necessities first: Not all expenses should be treated equally. Budgeting Percentages And Prioritiesīefore focusing on spending percentages, we actually need to establish spending priorities. Instead, they offer a range of percentages that are appropriate for each spending category. Note that the recommendations do not add up to 100%. The following spending recommendations are based on your net income, meaning the money that you actually take home after your employer deducts taxes, health care costs, and contributions to your retirement or pension plan.

DAVE RAMSEY BUDGET BREAKDOWN DOWNLOAD

Monthly Expenses: Dave Ramsey Budget PercentagesĪs a designated Ramsey Solutions Master Financial Coach, I have implemented these percentages in my budget, and let me tell you, they work! GOAL SETTING WORKBOOK Set and keep track of your money goals with our FREE financial goal-setting workbook.įREE DOWNLOAD What Percentage Of Your Income Should Go To What? Our Family Grocery Expenses For February 2020.The Budget Pad: Organize your Income, Track Expenses & Save Money.7 Tips To Improve Your Financial Wellness.

DAVE RAMSEY BUDGET BREAKDOWN HOW TO

Related Posts To How To Budget Your Income In order to put together a realistic budget, both spouses need to get on the same page and agree on their spending plan. These are the percentages that personal finance expert, Dave Ramsey recommends for your monthly expenses.Īs a trained Ramsey Solutions Master Financial Coach I believe these guidelines will help you optimize your finances.Īnd, before we get started, if you are married make sure you share this information with your spouse. The 70/20/10 budget rule works by allotting 70% of your income for monthly bills and everyday spending such as cell phones, groceries or utilities, then 20% goes to saving and investing and 10% goes to debt repayment.WATCH AS I DISCUSS MY RECOMMENDATIONS FOR YOUR BUDGET PERCENTAGES Budget Percentages: How To Distribute Your Income.-Transportation or auto services: 10-15%.-Insurance, such as life, medical, home or auto: 10-25%.Though breaking down your budget in percentages is based on your unique financial situation, here is a good general breakdown:.

What percentages should you use for your budget?.

The remaining 30% of your income is for discretionary spending. That leaves 50% for needs, including essentials like mortgage or rent and food.

The popular 50/30/20 rule of budgeting advises people to save 20% of their income every month.

Here are the answers to some of the most frequently asked questions regarding budget percentages.