Recommended Spending Percentages

I often am asked the following question:

Do you have a breakdown that shows what percentage of our monthly income should go towards the different categories? For example, what percentage of our money should we be spending on housing, transportation, etc.

Here is a general guideline for major spending categories:

Typical Spending Percentages
Giving 10 – 15%
Saving 10 – 15%
Housing 15 – 35% (including utilities)
House Payment < 25% (including escrowed taxes, insurance, PMI)
Transportation 10 – 20% (including gasoline, taxes, insurance, & repairs)
Food  10 – 20%
Clothing 5 – 10%
Other Debt < 10% (not including house and car payment)
Entertainment 5 – 10%
All other 5 – 10%

Hope this helps!  If you have a question, you can ask it HERE.

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1 Comment

  1. Daniel Almazan on April 7, 2013 at 8:21 pm

    Is that % of your take home salary? After taxes?

    Thanks



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