It includes health, life, homeowners, and car insurance, plus any other insurance you may have. Insurance is the second-largest percentage category. Because housing takes up so much of your budget, it can quickly eat away your retirement funding. This might mean moving to a cheaper area or downsizing. If your housing expenses are higher than that, you may need to look at options for lowering that cost. However, if you are paying for housing monthly, it is important to keep that cost below 35% of your income. By the time you retire, you may have paid off your mortgage. Some own their homes outright and therefore don’t have that recurring expense outside of property taxes.įor retired people, the goal is to keep costs low without negatively impacting their standard of living. Most people who work full-time pay rent or a mortgage.
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Experts advise keeping housing between 25% and 35% of your income or less, if possible. Your mortgage or rental expenses make up this category. Paying for housing will usually take up the biggest portion of your income. We will also compare how they apply for working people versus retired people. In the following section, we will examine each of those 10 categories. Most people who follow this method adhere to 10 common categories.Īre you over the age of 60? Did you know that healthcare is likely your biggest unknown expense in retirement? Check out our simple 3-step Medicare guide that could save you thousands in surprise medical bills or penalties. The goal is simple: keep your expenses in each category within a certain percentage of your income. One way to do this is to think about your expenses as percentages.īudget percentages, as made popular by radio personality Dave Ramsey, help you understand where your money is going. There are many techniques for budgeting out there, but the basic idea is to balance your income and expenses. 10 years - SAVVY-DISCOUNTS.If you are retired or getting close to retirement, chances are you are familiar with budgeting. The nation's #1 web site for money-saving ideas. Save Money * Save Time * Take Control * Help the Environment Brand Name Savings, Life Insurance Planner, And Paint Job CalculatorĪuto, credit card, family budget, health, real estate, retirement, utilities If you have a high income, your necessities will be a lower percentage or income and hopefully savings (not debt) will be higher than recommended.Īverage Interest Rate For All Loans, Determine Percent Of Budget For Home Expense Categories, Plan For Irregular Payments, Cash Flow Planner, Generic Vs. For instance, if you have a very low income your necessities percentages will be high. Here are suggested percentage guidelines based on net income compiled by Dave Ramsey, author of Financial Peace (Viking, 1997, $21.95) which he says are only recommended percentages and will change dramatically if you have a very high or very low income. Printer friendly: Get a printout of the calculation results and save the print version for budgeting or reference.Įnter your net-income for whichever period of time you would like to translate the percentages into: If you have a high income, your necessities will be a lower percentage or income and hopefully savings (not debt) will be higher than recommendedīudget categories such as: Charitable gifts, Saving, Housing, Utilities, Food, Transportation, Clothing, Medical-Health, Personal, Recreation, Debts These are only recommended percentages and will change dramatically if you have a very high or very low income. The calculations are based on the suggested percentage guidelines based on net income compiled by Dave Ramsey, author of the book Financial Peace (Viking, 1997, $21.95)
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Calculator for percentages of family expenses and personal finance.ĬALCULATE THE BUDGET PERCENT FOR EACH CATEGORY OF HOUSEHOLD EXPENSEĬalculator for percentages of family finance. CALCULATE THE BUDGET PERCENT FOR EACH CATEGORY OF HOUSEHOLD EXPENSE.