suggested percentages for household budgets

#SUGGESTED PERCENTAGES FOR HOUSEHOLD BUDGETS HOW TO#

The Final 20 Percent Should Go to SavingsĪnd finally, allocate twenty percent of your take-home household income to saving for your money goals. This spending category includes things like: Thirty percent of your take-home pay should be under the category of recreational activities/ wants. Insurance premiums, for example, life insurance, health insurance, car insurance, home insurance, etc.)Ĭonsider a debt calculator if you need help figuring out your payments for existing loans! 30 Percent of Income on Personal Spending.Bills (car payments, minimum debt payments, student loans, credit card payments, etc.).Housing costs (rent or mortgage payment, property taxes, etc.).This necessary spending includes things like: Use fifty percent of your take-home pay for essentials.

Necessities like housing, utilities, food, bills, pet expenses, insurance, and transportation.īelow is more information on each: 50 Percent of Income Goes to Essentials This is how the 50/30/20 breakdown will work: Allocation Percentage This rule should be applied to taxed income and essentially split your total household income into three spending categories. Most experts will recommend a budget breakdown with the 50/30/20 rule.

There is an ideal breakdown that can work for many households! Recommended Household Budget Percentages: The 50/30/20 Rule

#SUGGESTED PERCENTAGES FOR HOUSEHOLD BUDGETS HOW TO#

In that case, you may be curious about how to break down a budget into percentages. Suppose you have never worked with a budget before or are adjusting your budget for specific money goals. According to CNBC, 53% of Americans say that learning how to budget their money and track their expenses is the most valuable financial lesson they have learned! 1 Your ideal household budget percentage will help you allocate income to necessities, recreation, and, finally, savings. These bills and expenses may include but are not limited to, rent or mortgage payments, utilities, groceries/dining out, clothing, and personal care items.Ī household budget is an essential part of taking control of your personal finances. Household budgets should consist of all recurring bills and expenses it takes to run a household. With this breakdown, 50% of your income should go towards essentials, 30% towards discretionary spending, and 20% towards savings. Web Winder Website Services, Providing Online Calculators for Websites since 1997.Many financial experts agree that the ideal household budget breakdown is 50/30/20, as known as the 50/30/20 rule. If you have a high income, your necessities will be a lower percentage or income and hopefully savings (not debt) will be higher than recommended.Įnter your net-income for whichever period of time you would like to translate the percentages into:īudget Percent Calculator, Copyright © 1999 - 2011, Daniel C. For instance, if you have a very low income your necessities percentages will be high. Here are suggested percentage guidelines based on net income compiled by Dave Ramsey, author of Financial Peace (Viking, 1997, $21.95) which he says are only recommended percentages and will change dramatically if you have a very high or very low income. Budget Percentage Calculator Budget Percent Calculator

Suggested percentages for household budgets