Wednesday, July 15, 2009

Spending Percentages--How do mine compare?

Since I have been tracking my spending with You Need a Budget since January, I want to analyze my spending percentages to see if my budget is in line with what I think I'm doing and with what the experts recommend.

Here are the recommended spending percentages from Dave Ramsey's Total Money Makeover. My percentages from YNaB follow in blue. My percentages don't add up to exactly 100, because I did not include my contributions to my daughter's college expenses in my monthly budget until June, because I have that automatically deducted from my pay.

Dave's Recommendations
Charity - 10-15% 6%
Saving - 5 - 10% 2%
Housing - 25-35% 28%
Utilities - 5 - 10% 8%
Food - 5 - 15% 8%
Transportation - 10-15% 9%
Clothing - 2 - 7% 2%
Medical/Health - 5-10% 8% (including premium)
Personal - 5 - 10% 7%
Recreation - 5 - 10% 1%
Debts - 5 - 10% 15%
(Daughter in college) 8%

My percentages look pretty balanced except of course, savings is too low until the debt is paid off. One surprise for me was that transportation was so high (9%). Since I don't have a car payment, I thought it would be lower, but when I added up insurance, repairs and gasoline, the total was surprising. Now that we are down to one car, these expenses should be reduced.

This exercise is useful to help me see if I'm on track with my spending plan. I think I'll do this check up every quarter.


jpkittie said...

wow - you are doing great! i would be totally scared to check mine! I know that my debts are like 33% (blah!!!)

Miss M said...

I don't know the exact percentage but I too was shocked by how high our car expenses are. Both cars are paid for too! But gas, registration, insurance and repairs really add up.