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For those that budget

Posted by on Jul. 14, 2013 at 10:40 PM
  • 11 Replies

 Have you ever figured out your percentages?

This is off of one of my pins (see here) and I find it very interesting. I've just started actually sticking to a budget and getting debts paid down (which is working!) so I've never thought about turning them into to percentages.

Once you have an estimate of your monthly income, there are several tools available that you can use to allocate funds to different categories. I really like using Dave Ramsey’s guideline percentages. Here are his recommendations:

* Charity – 10-15%

* Saving – 5 – 10%

* Housing – 25-35%

* Utilities – 5 – 10%

* Food – 5 – 15%

* Transportation – 10-15%

* Clothing – 2 – 7%

* Medical/Health – 5-10%

* Personal – 5 – 10%

* Recreation – 5 – 10%

* Debts – 5 – 10%

by on Jul. 14, 2013 at 10:40 PM
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Replies (1-10):
kattcooper
by New Member on Jul. 14, 2013 at 10:43 PM
Umm... More for charity then debt or food that doesn't really make a ton of sense!
HisSweetheart07
by Platinum Member on Jul. 14, 2013 at 10:49 PM

 It's Dave Ramnsy's way. Once you go through the debt snowball (where you pay off all your large debts), he teaches to donate to charity.

I have to say I agree - once the debt is down to that percentage, then I should be donating to something I'm passionate about to help keep it alive and thriving. There are so many different things that can be placed under 'charity': church donations, boys & girls club, food pantry, etc. I think it's a great idea.

Quoting kattcooper:

Umm... More for charity then debt or food that doesn't really make a ton of sense!

 

SassyWildflower
by on Jul. 14, 2013 at 11:35 PM
Nope.
psych_mom
by on Jul. 15, 2013 at 7:47 AM

I have never figured out the percentages.

Cafe Steph
by Head Admin on Jul. 15, 2013 at 10:38 AM

I put way more towards debt right now because hubby and I both have student loans and credit cards we're trying to get rid of, plus the mortgage. Charity for us is about 5% right now due to that.

HisSweetheart07
by Platinum Member on Jul. 15, 2013 at 10:57 AM
Like i told pp, this is for after youve gotten your debt into that precentage. Of course paying your debt is more important but this is for after its paid down.

If you want to learn about his way to pay down debt - google Debt Snowball by Dave ramnsey. It shows you the best way to pay off your debt while saving yoy the most (from intetest charges, etc). Its a very helpful tool.


Quoting Cafe Steph:

I put way more towards debt right now because hubby and I both have student loans and credit cards we're trying to get rid of, plus the mortgage. Charity for us is about 5% right now due to that.

dingysfamily
by Suzi on Jul. 15, 2013 at 11:13 AM
2 moms liked this

 Nope, don't do the percentage thing but our 'budget' is just basically knowing what our income is, dh gets paid every other week, and what our bills are.  We just know we have to stay within certain boundaries and we do.  I don't agree with the higher % for charities though; I do however believe in giving and giving what's comfortable for you personally ... and that 'giving' doesn't always have to be in the form of money either.  Giving of money is just one way to donate; you can always give things like clothes (in good condition), furniture (also still in good condition); I've given both of these.  You can also give the donation of you time.  We've always done very well and managed to stay out of heavy debt; we paid our house off 12 years early and and the only cc we carry a balance on is a Home Equity loan, & it's a small balance we will have paid off in the next few months.  When we make a large purchase now, we usually do one of those no-interest for a certain # of months payment plans from where we buy the whatever it is ... we just bought a new fridge from Home Depot and we got a HD card & put the fridge on the card, got tne no-interest for 18 months.  We've done this for several things over the years and we always pay the item off early.  I guess if Dave Ramsey works for you that's great; but for us just simply living within our means does the trick.

inmybizz
by Ruby Member on Jul. 15, 2013 at 11:52 AM

I agree. I don't follow Dave Ramsey  either. I also live within my means and I pay cash for everything. 

Quoting dingysfamily:

 Nope, don't do the percentage thing but our 'budget' is just basically knowing what our income is, dh gets paid every other week, and what our bills are.  We just know we have to stay within certain boundaries and we do.  I don't agree with the higher % for charities though; I do however believe in giving and giving what's comfortable for you personally ... and that 'giving' doesn't always have to be in the form of money either.  Giving of money is just one way to donate; you can always give things like clothes (in good condition), furniture (also still in good condition); I've given both of these.  You can also give the donation of you time.  We've always done very well and managed to stay out of heavy debt; we paid our house off 12 years early and and the only cc we carry a balance on is a Home Equity loan, & it's a small balance we will have paid off in the next few months.  When we make a large purchase now, we usually do one of those no-interest for a certain # of months payment plans from where we buy the whatever it is ... we just bought a new fridge from Home Depot and we got a HD card & put the fridge on the card, got tne no-interest for 18 months.  We've done this for several things over the years and we always pay the item off early.  I guess if Dave Ramsey works for you that's great; but for us just simply living within our means does the trick.


snuggiewoogie
by on Jul. 15, 2013 at 12:32 PM

 Nah!

Cafe Steph
by Head Admin on Jul. 16, 2013 at 10:25 AM

I checked that out a few years ago and was already doing it that way, thankfully, so we're on the right track and hopefully we'll get there much sooner now. :)


Quoting HisSweetheart07:

Like i told pp, this is for after youve gotten your debt into that precentage. Of course paying your debt is more important but this is for after its paid down.

If you want to learn about his way to pay down debt - google Debt Snowball by Dave ramnsey. It shows you the best way to pay off your debt while saving yoy the most (from intetest charges, etc). Its a very helpful tool.


Quoting Cafe Steph:

I put way more towards debt right now because hubby and I both have student loans and credit cards we're trying to get rid of, plus the mortgage. Charity for us is about 5% right now due to that.



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