A realistic budget starts by determining your monthly income, and then calculates all your monthly expenses. Take your total income and multiply it by the recommended percent for an ideal family budget. Next, we will use an example to work out what the ideal monthly budget is for your rent. Your fixed expenses would include your regular monthly bills, including mortgage or rent, telephone and utilities, insurance, car payments, savings/retirement, child care, school fees, and gym memberships, e.g.
If you hire a cleaning service to do a one-month cleaning of your apartment. Bring the car in for a wash, make sure you are including those costs in your budget. Household cleaners, repairs or replacements of damaged appliances. And cleaning furniture can also all cost money, and you will want to make a note to budget for housekeeping. According to the US Department of Labor, the average US household spends $120 a month on clothes. And you will likely want to factor personal care expenses, along with any dry cleaning, into that budgeting category. About 71% of Americans also report spending for home maintenance, spending an average of $1,581 (or $132 a month) for services that may include child or elder care. Home cleaning or lawn care, laundry and dry cleaning, pest control, and a home security system.
Looking at these national averages, American households spend $646 per year (about $54 a month) for things that are categorized as personal care products and services / reviews. And $1,434 (about $120 a month) for apparel and services. The average monthly spending on personal care products and services will vary from person to person. But hair cuts, soap, toothpaste, and other basic items all add up and need to be included in a monthly spending budget. All told, and on average, American households spend another 11% of our annual income. In addition to the 16% spent on our mortgages or rent, on things related to our homes.
The average family’s budget includes all living expenses, from necessities such as food, shelter, and transportation, to other expenses such as clothing and education. Once you have your budget planned, total your budget categories by largest categories, such as your housing and transportation costs. Your budget is personal, but if you are looking for ways to reduce your expenses, this is a starting point. Be sure to work out the weekly cost of your household groceries. As well as your dining out expenses in order to come up with a manageable food. And grocery budget each month for you and your family.
The bulk of your budget should go to groceries, which will save you money in the long run. From your monthly after-tax income, allocate 50% to needs, like housing, food, transportation, and insurance; 30% to wants. Like monthly subscriptions, travel, and entertainment. And 20% to paying down debt or putting money toward savings some tips click here. The amount of personal money you budget for each month depends on your income and baby steps. If you earn just $2,000 per month, and your personal spending category takes up 20% of it. You will have to adjust your spending habits.
