I’ve never really sat down and broken down my bills into percentages.  Personally, I never really saw the point.  If you have a budget that is working for you then who cares. The guidelines are nice, but at the end of the day your budget needs to work for you.  You will be forever frustrated if you try to fit your life into a box someone else made.  But, if you are in the process of making a budget for the first time, or reworking a budget that doesn’t fit, then it’s a great place to start. But I was curious how I compared to others and to the suggested percentages.  Here are the recommended percentages according the experts.  The percentages are of our net income.

So here it goes…

Mortgage: 24%
Household bills: 12%
Transportation: 25%
Savings: 5%
Credit card: 5%
Medical: 1%
Spending: 15%
Groceries: 11%

Household bills consists of the HOA dues, cable/internet/ phone, electric, cell phone, and the city.

Savings consists of retirement and e-fund savings.  It doesn’t consist of extra money paid to mortgage.  If I put that into the savings category it changes savings to 7% and mortgage to 22%.

Transportation consists of car payments (15%), insurance (3%), and gas (7%).

Credit card balance is from landscaping the backyard and is at zero percent interest.

Medical consists of one copay a month and the copays for our monthly medications.  It does not take premiums into account.

I’m curious to know what your budget percentages look like.  Especially your transportation costs.  Cause Dang! 25% is a lot.  So I’m curious to know how it compares to yours.  I will say that it’s my number one financial goal right now to get the cars paid off and never have another car payment again.  That would bring down the transportation costs to 10% and up the savings to 20%.  Which would be awesome! Of course a big chunk of that savings would go to buy a car… so call it what you will.

Pic by: Jeff Keen

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