This awesome free printable can be found in our resource library. Use the household budget percentage worksheet to help determine how much should I spend on each budget category. Now, you need to multiply your income by each of the household percentages. Just realize your home budget percentages will be higher than the recommended.) 2. (Okay, if using your gross income it too difficult, then use net income. Why should taxes be included? Paying taxes is a part of life and a very smart lesson to know how much in taxes you pay each and every pay period. Not the amount on your paycheck or deposited into your bank account. That means the total earned before taxes. Use Gross Incomeįirst, everything is based on gross income. When trying to figure out what is your household budget, it helps to start with household budget percentages. It can be as simple as a list of daily expenses and monthly income, or as complicated as a spreadsheet with different scenarios for how much you should spend and save each month. As an Amazon Associate, I earn from qualifying purchases. This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. So, let’s dive in and figure out what percentage of income should go to each category to create your ideal monthly budget. One great way to get ahead on making a budget is knowing the typical household budget percentages. Now, we are working our way to financial independence. Thankfully, we preserved through our initial attempt. Trying to figure out a budget seemed like an impossible task. Plus we were transitioning to one income. Like there wasn’t enough money to go around. Sometimes it felt like nothing would work. Plus we have a budget percentages calculator for you to figure out your exact monthly budget percentages!īack as a newly married couple, we were trying to budget (or better said, live within our means). Money Bliss “Cents Plan” method for budget percentages.Average Annual Budget Percentages (what people do without really knowing).This post will give you some insight into household budget percentages based on: In order to better prepare for life’s curveballs, it’s important that you have an idea of what the ideal budget percentage should be based on your income level. You are trying to figure out how much should I budget for each category? You feel like you can’t make your expenses less than your income.īefore you know it, making a budget feels like a circle and you are the square trying to jam yourself in there. When setting up a budget for the first time or trying again for the tenth time – honestly, it isn’t the most fun thing to do in the world. That means you need to make smart money decisions today that will make the long run easier. The reason why we are different is because we are focused on helping you enjoy life and money. Also, you may be surprised to learn how we, at Money Bliss, differ from many others like Dave Ramsey and the average person. Honestly, that is a really good question and we will dig into the answer shortly. Find out how much you should be able to save each month and get a monthly spending plan for your family. The image provided in the activity sheet is from the article on my website where I researched and averaged the recommended allocation percentages across several financial websites.Inside: Find out the ideal household budget percentages. In this activity, students will be reviewing the suggested budget breakdown percentages and answering reflective questions as they go. We then update it after we learn about income tax to get a more accurate expected income, and use the numbers generated to form the basis of our research into housing, transportation, food, insurance, and travel. In my class, we will create budgets at the beginning of the year on Google Sheets using the suggested budget percentages from this activity. This makes for a great activity to do at the beginning of a semester and then reference it, add to it, and update it as you learn more during your class. I created this resource to help students see how a sample budget breakdown might look and introduce the idea of zero-based budgeting to ensure all income is allocated between the different budget categories. It's a core part of a financial literacy curriculum but when it comes to planning ahead and trying to create a budget for a future salary (or even their current income) the process for figuring out what budget categories to include and how much to allocate to each category is a challenge. Budgeting is not always the easiest or most fruitful of topics in a personal finance class.
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