The budget percentage recommendations for this category are 5 – 10 % of your budget. Utilities - Utilities are bills for things such as your gas and electricity. The grocery budget percentage is very important. The most common retirement accounts are an IRA or 401(k).įood budget percentage - Dave says that you should be spending 10 – 15% of your income on your food for the month, including both groceries and eating out. Saving - Dave Ramsey advises that you should be saving 10% of your income towards your retirement. Giving - This is an important category for Dave Ramsey, as he believes that you should always give, even when you are in debt. We can look at each different budget category and see what Dave means about each one. Ok so now we know what the budget percentages are, but what does that actually mean? Miscellaneous - 5 to 10 percent Budget Percentage Category Explanation
Let’s take a look at the different categories and the recommended budgeting percentages to manage your money: What Budgeting Method Options Are There?īudget Percentages Dave Ramsey Recommends.How Do I Determine the Right Budget Percentages?.Budget Percentages Dave Ramsey Recommends.No matter what type of budget you choose to use, discover how Adobe Acrobat can help you create, manage, and organize your PDF documents online. Discover how to create an annual operating budget.
Learn about cash flow budgets and how they can help you organize your finances.Looking for more resources to help you stay on top of your finances? Additional resources.īudgeting isn’t the easiest task in the world, but it’s definitely important. You can even share your budget spreadsheet with your family to teach your kids how budget for themselves - an essential skill they’ll need in the future. But you can easily convert your PDF to Excel online if you prefer to work in a spreadsheet. If you choose to download a premade template, it will already be in a PDF for easy sharing. With a little persistence (and perhaps some self-restraint), you can more easily stick to the budget, maintain your family’s lifestyle, save for the future, and have a little fun in the process. It’s best to keep up with your budget at least weekly, so you can be sure you don’t miss any expenses. Now that you have the basic budget template, keep track of your monthly purchases under each category. Write each number above the respective category. Keeping your monthly income in mind, calculate the amount of money you can spend on each category according to the 50 30 20 budget rule. However, if you prefer to build your own template, you can also start a 50 30 20 budget spreadsheet that outlines the three categories and the major expenses within each category. You can easily download a free PDF budget template with prelabeled sections and categories, update the spending categories to fit your household, and fill in your estimated earning and spending. The best way to create a sustainable budget for your household is to start with a template. How to make a 50 30 20 budget spreadsheet. At least 20% of your earnings should go into a rainy-day fund, which can help you build your savings account, repay outstanding debts, and grow your investment portfolio. The last category in a 50 30 20 budget is for savings. This category includes spending on hobbies, entertainment, eating out, and other non-essential purchases. These things you might not necessarily need, but they definitely make life more enjoyable. Sometimes you want to have fun right now, and the 50 30 20 budget accounts for that.Īccording to the 50 30 20 budget rule, 30% of your income should go toward your wants. These include essentials like mortgage, rent payments, food, utilities, transportation, and anything else your household needs to survive. Half of your earnings should go toward the things you need. Here’s a quick rundown of the various categories of the 50 30 20 budget rule and how to use them: Needs: 50% The template also describes the percentage of your earnings you should put toward each category.
They all correlate with the three major categories where you should put the money you earn monthly. There are three sections in a 50 30 20 budget template.
Sections of the 50 30 20 budget template. Here's how to make your own 50 30 20 budget template to stay on track with your finances. It helps you allocate your money into three essential categories: needs, wants, and savings. The 50 30 20 budget rule is one of the most popular budgeting guides available. Want to start allocating your money effectively? Learn how to make a 50/30/20 budget template to separate your earnings into needs, wants, and savings.