Figuring out how much money to budget in each category can be a daunting task. It’s important to know that you don’t have to have an exact number and that tweaking it along the way is perfectly okay! With a little planning, you can create a budget that works for you and your family. Check out these tips on how to set up your budget today!
What Should I Be Spending in Budget Categories?
Deciding how much money should be allocated to various categories in a family budget depends upon the particular family’s income, lifestyle, and financial goals. The following ranges of percentages, however, can serve as guidelines:
| Budget Category | Percentage |
|---|---|
| Housing | 33-35% |
| Food | 18-25% |
| Transportation | 7-9% |
| Clothing | 6-12% |
| Medical | 6-8% |
| Automobile Insurance | 2-3% |
| Life Insurance | 2-5% |
| Education | 1-2% |
| Credit Obligations | 12-15% |
| Savings | 2-10% |
| Recreation/Entertainment | 2-6% |
| Church/Charities | 2-10% |
Are you ready to take a look at your budget and see where your money is going each month? This can be an extremely eye-opening experience, and it’s one that you can use to help make changes in your spending habits. By taking a closer look at each category and comparing it to some recommended baselines, you’ll be able to better understand where your money needs to go in order to meet your financial goals. So let’s get started!
How Much Money Should I Budget for Housing?
When it comes to budgeting for housing, there are a few general guidelines you can follow. If you’re looking to rent an apartment, you should budget for about 25% of your monthly income. This will ensure that you’re able to live comfortably while still being able to save money. If you’re looking to buy a house, you should budget for about 30% of your monthly income. This will allow you to get a mortgage with a low interest rate and still have money left over each month to save.
Of course, these are just general guidelines and your actual budget will depend on your specific situation. But following these general principles will help you make the best decision for your financial future.
How Much Money Should I Budget for Food?
When it comes to budgeting for food, there is no one-size-fits-all answer. The amount of money you should set aside will depend on your lifestyle and eating habits. If you typically cook most of your meals at home, you can get by on a budget of $300 per month per person in your household. This will allow you to purchase groceries and basic kitchen supplies.
If you eat out frequently or have a more expensive taste in food, you should budget for $600 per month. This will give you flexibility to eat out as well as purchase higher quality ingredients.
No matter what your budget is, there are plenty of ways to save money on food. For example, you can take advantage of sales and coupons, cook in bulk, and store leftovers. By planning ahead and being mindful of your spending, you can stick to your budget and still enjoy delicious meals.
How Much Money Should I Budget for Transportation?
When it comes to budgeting for transportation costs, there are a few things you will need to take into account. First, consider whether you own a car or rely on public transportation. If you own a car, you will need to budget for gas as well as routine maintenance and repairs. In general, you should expect to spend about $400 per month on these costs.
If you live in a city and rely on public transportation, your costs will be lower. An unlimited monthly pass for the bus or subway will typically cost around $200. Of course, these are just averages – your actual costs will vary depending on the price of gas in your area and the amount of driving you do each month. Nonetheless, these numbers can give you a good starting point for budgeting your transportation expenses.
How Much Money Should I Budget for Entertainment?
How much you spend on entertainment each month is entirely up to you. However, it is important to create a budget and stick to it. Otherwise, you could find yourself spending more money than you can afford.
If you enjoy going out to movies and restaurants, you should budget for about $200 per month. This will ensure that you have enough money to cover your costs. If you prefer to stay home and watch TV or play video games, you can get by with a smaller entertainment budget of $50 per month. This will allow you to save money while still enjoying your hobbies.
No matter how much you spend on entertainment each month, be sure to stick to your budget. This will help you avoid financial problems down the road.
How Much Money Should I Budget for Clothing?
It can be difficult to figure out how much money you should budget for clothing. If you shop at affordable stores such as H&M or Forever 21, you should budget about $100 per month. If you prefer designer brands or need to buy work clothes, you should budget for about $300 per month.
Keep in mind that these are just estimates – you may spend more or less depending on your personal style and wardrobe needs. Just make sure to leave some room in your budget for unexpected expenses, such as a new pair of shoes to replace an old pair that has worn out.
With a little careful planning, you can ensure that your clothing budget meets your needs without breaking the bank.
How Much Money Should I Budget for Personal Care?
When it comes to personal care, there are a few essential items that everyone needs in order to maintain good hygiene. However, the cost of personal care products can quickly add up, so it’s important to budget wisely.
For basic items like shampoo, soap, and toothpaste, you should budget about $50 per month. If you wear makeup or use other beauty products regularly, you should budget for about $100 per month.
By carefully planning your budget, you can ensure that you have enough money for all of your personal care needs.
How Much Money Should I Budget For Savings?
When it comes to saving money, there is no magic number that works for everyone. However, experts generally recommend saving 10% of your monthly income. This may seem like a lot, but remember that savings are for emergencies only – you shouldn’t be dipping into them for everyday expenses.
If saving 10% is not realistic for you, try to set aside at least 5%. Over time, you can gradually increase your savings rate until you reach the 10% mark. By following these simple guidelines, you can ensure that you have enough money set aside to cover unexpected costs.
How Much Should You Budget for Education?
How much you need to budget for education will depend on what level of education you are pursuing. Some people choose to get a trade certification after high school which can be completed in a few months and cost around $2,000.
Others may choose to get an associates degree from a community college which could take two years and cost around $9,000. Getting a bachelors degree from a 4 year college or university is even more expensive with the average yearly tuition being $23,000.
And if you want to pursue an advanced degree like a masters or doctorate, you can expect to spend even more. Pursing an MBA could cost upwards of $50,000. It is important to consider what level of education you want to achieve before making a budget. Many employers will also reimburse employees for some or all of their educational expenses so that could be another factor to consider when budgeting for education.
Budgeting for Private School
It’s no secret that a good education comes at a price. But how much should you budget for education? The answer depends on a number of factors, including the type of school you’re looking to send your child to and the level of education they need. For example, private schools tend to be more expensive than public schools, but they may offer a better education.
Similarly, if your child needs specialised instruction, such as for a learning disability, you may need to budget more for their education. Ultimately, the best way to determine how much to budget for education is to speak with educators and financial planners to get an idea of the costs involved. With careful planning and a realistic budget, you can ensure that your child gets the best education possible.
So, how much money should you budget in each category? The answer will vary for everyone, but it’s a good idea to start by looking at your income and expenses and then dividing them into these general categories. Once you have a better understanding of where your money is going, you can start adjusting your spending and saving habits to fit your needs.
