|Our 2012 Spending|
In setting up a monthly budget, I started by looking at how we spent our money in 2012. The percentages are based on our income after taxes. We were given a the following guidelines at church to assist us in setting up a budget. The Bible has a lot to say about money, part of which is being a good steward of the resources God has given us.
Suggested Spending Plan Guidelines:10-15% Giving (church and other contributions)
5-10% Saving (emergency, replacement, long term)
0-10% Debt (loans, credit cards)
25-38% Housing (mortgage/rent/maintenance/utilities, Internet, Cable TV, Yard, improvements/repairs)
12-15% Transportation (auto repairs, maintenance, gas, bus, license, payments)
5% Insurance (auto, homeowners, life, medical/dental, other)
15-25% Household/personal (groceries, clothes/gifts, household items, toiletries, cleaning supplies)
5-10% Entertainment (vacation, trips, restaurants, babysitting, education, hobbies, movies, sports)
5-15% Professional Services (medical, childcare, legal, counseling)
2-3% Misc., small cash expenses
In the handout, I noticed that pets were not listed anywhere so I included them in the Entertainment category! Our miscellaneous item was postage but was so small it didn't even amount to 1%. I was happy to see our budget is in line with the suggested guidelines, or in most cases, even better! Now I just need to apply these percentages to our monthly income to get a monthly budget plan. I love that big chunk of savings which includes our 401k contributions and bank savings. As we get closer to retirement, I think we need to save as much as possible.
Do you have a spending plan (budget)?