11/30/2022 0 Comments Household budget percentages![]() ![]() 60 percent: Monthly expenses - such as housing, food, utilities, insurance, Internet, transportation.Now, your percentage will vary, but the percentages given here are just rough guidelines: These are the things that most often break a budget, because most people don’t budget for them. Basically, this budget asks you to fit your regular monthly expenses within 60% of your gross income, so that you have room for savings (long-term and short-term), retirement and spending money (“fun money”). There are many ways to structure your budget, but the simplest I’ve found is the 60% solution. Now let’s look at ways to create a simple budget: You can adjust later, but it’s better to err on the side of too high a number, rather than putting a low number and breaking your budget. Estimate, in round numbers, how much you spend on each expense every month. A simple spreadsheet will do - and if you can create a SUM formula to add up the total of a column of numbers, you have all the spreadsheet knowledge necessary.Ĭreate a simple spreadsheet for your budget, if you haven’t already, and start by listing your income and your monthly expenses. HOUSEHOLD BUDGET PERCENTAGES SOFTWARENow, there’s plenty of fancy software out there for setting up budgets, but I don’t think they’re necessary. Those are both valid points - which is why you should follow this simplified plan if these things apply to you. ![]() If you haven’t done it yet, it’s probably because budgets seem intimidating to you, or they are too much hassle to set up and maintain. ![]() I can’t claim these ideas are original, or that I haven’t discussed them in various places before, but in my experience, they work. The goal is to reduce headaches, eliminate the need for complicated tracking schemes, and reduce the time you spend on your budget and finances to about 15-20 minutes per week. I thought it would be helpful to share some of the ways to make your budget as simple as possible. I’m always looking for ways to simplify my finances (I’m weird like that, I know), and recently I’ve been scrutinizing my already-simple budget to make it even simpler. Every Tuesday is Finance & Family Day at Zen Habits. ![]()
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