Debt Free Destiny

These personal budget category percentages will help you get your budget into line and on track.

One of the hardest things to do when you are creating a household budget, is to try and see where your money is going. The first thing you need to do is track your spending and see if you are spending too much in one category or not enough in another (if thats possible).

Here’s a chart of what some budget category percentages should be, based on several sources. Each source has a slightly different range and your budget will change based on your income and spending needs.

For example, a person with a lower income will have a higher percentage on basic needs than a person with more income, who may put more money into savings, recreation, or charity.  Or, if you live in a more expensive area, you’ll spend more on housing, etc. Remember, these are only guidelines, you situation may call for numbers outside these percentages.

Category	Dave Ramsey	Typical Credit Counseling Advice	CCCS
Charitable Giving	10-15%	4%
Housing	25-35%	24%	20-30%
Utilities	5-10%	incl. in Housing	4-7%
Food	5-15%	14%	15-20%
Transportation	10-15%	17%	6-20%
Medical	5-10%	6%	2-8%
Clothing	2-7%	6%	2-4%
Invest/Savings	5-10%	13%	5-10%
Debt Payments	5-10%	13%	15-20%
Misc. (Personal,Recreation,Life Ins.)	5-10%	5%	5-10%

After you’ve tracked your outgoing money for at least 6 weeks, convert them into percentages and take a hard look at how you match up against the recommended percentages above.

If you are over in some categories, try to trim your budget for that item. Likewise for categories that you aren’t spending enough in, like savings. Try to figure out ways to save money and put it toward savings.

Use our easy, interactive and free budget template to easily manage your spending for the categories that you set up. Also check out how budgeting with the envelope system can really help you get a handle on impulse spending.