22 Nov

A Good Rule of Thumb For Spending – Household Budget Categories.

General

Posted by: Shakila(Shak) Fernandez

Consider breaking up your monthly budget into the following categories.

  • Housing: mortgage payments, property taxes, utilities, etc.
  • Transit: car payments or transit passes, gas, maintenance, etc.
  • Debt: payments to credit cards, lines of credit, etc.
  • Savings: your long-term savings for retirement, etc.
  • Life: food, vacations, fun, medical, childcare, etc.

Consider spending the following % on the below categories:

  • Housing: 35% of your monthly income.
  • Transit: 15% of your monthly income.
  • Debt: 15% of your monthly income.
  • Savings: 10% of your monthly income.
  • Life: 25% of your monthly income.