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 The “Ideal” Budget doesn’t exist but all budgets should have these ten components. Keep in mind as you look at the following that the percentages are flexible depending on your overall financial picture. But, also keep in mind that these percentages are a guide toward maintaining your financial health. The percentages are of net income.

 
  1. Shelter – 33% includes rent, mortgage, repairs, taxes, insurance, HOA dues
 
  1. Household Expenses – 5% includes all utilities (electric, water, gas, garbage pick up, telephone, internet, security system, sewer)
 
  1. Food – 22% includes all groceries, school & work lunches, pet food, dinners out, breaks, vendor machines, etc.
 
  1. Transportation – 18% includes car payments, maintenance, insurance, repairs, car washes, vehicle taxes, gas, shuttle service or rental cars on trips.
 
  1. Clothing – 5% includes clothing for the entire family, dry cleaning, mending, etc.
 
  1. Health and Medical – 4% includes insurance premiums, medical and prescription co-payments, glasses, OTC medicines, etc.
 
  1. Personal Expenses – 5% includes games, hobbies, dues, fees, tobacco, photos, batteries, music, sporting goods, vacations, gifts, Christmas, cosmetics, hair cuts, postage, cable or satellite, alcoholic beverages, batteries, etc.
 
  1. Insurance – 3% includes life insurance, educational, retirement.
 
  1. Miscellaneous – 2% includes personal improvement classes, wills, tithes, etc.
 
  1. Savings – 3% includes long term, special purchases.
 
Example:
 
 $2250 net income per month is broken down as follows:
 
1.      Shelter                        $742.50
2.      Household                  $112.50
3.      Food                           $495.00
4.      Transportation          $405.00
5.      Clothing                     $112.50
6.      Health/Medical          $ 90.00
7.      Personal                     $112.50
8.      Insurance                   $ 67.50
9.      Miscellaneous             $ 45.00
10. Savings                       $ 67.50

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