A Balanced Budget - Episode 156

EPISODE 156: A BALANCED BUDGET

Welcome to the Monday Money Tip Podcast. How much is “normal” for a person to spend in the different categories for their budget? In this episode, we’ll break down how to create a balanced budget and what percentage of your income should go to each category in your budget. For example, what is a “normal” amount for people to spend on groceries, housing, etc.? In our Current Events segment, we’ll discuss updated interest rates for savings accounts, CDs, and mortgages. Our success story comes from Todd, who has been able to make considerable changes in his finances in just three months, including paying off a car loan and saving a month’s salary. 

WATCH OR LISTEN:

About the Episode:

  • In this episode, we’ll break down how to create a balanced budget and what percentage of your income should go to each category in your budget. For example, what is a “normal” amount for people to spend on groceries, housing, etc.? 

  • In our Current Events segment, we’ll discuss updated interest rates for savings accounts, CDs, and mortgages. 

  • Our success story comes from Todd, who has been able to make considerable changes in his finances in just three months, including paying off a car loan and saving a month’s salary. 

Average Percentages for a Balanced Budget (Download a copy HERE)

  • Giving 10-15%

  • Saving 10-15%

  • Housing 15-35% (including utilities)

  • House Payment < 25%

    1. Including escrowed taxes, insurance, PMI

  • Transportation 10-20%

    1. Including gasoline, taxes, insurance, and repairs

  • Food 10-20%

  • Clothing 5-10%

  • Other Debts < 10%

    1. Not including house and car payments

  • Entertainment 5-10%

  • All other. 5-10%

 

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