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| 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)?
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5 comments:
I know our budget is in line too. We don't throw money away and are always assessing where our money is going and if it's worth what we get in return. Often it changes down the road.
Have a fantastic day. ☺
Oh, I sort of dread to see my breakdown. I have two BIG categories--Colin and Emma. Hee! Hee! Saving it tough with college too. Ugh. Never seems to be enough money!
You have a great handle on your budget! I use Quicken so am always checking out where our money is going. It looks much better when taxes aren't included. :)
Beaded Tail: Oh yes, the taxes are a killer! If I based it on our gross income, taxes is right near the top.
Congratulations on doing so well with the savings. Well done.
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