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So what is the Ideal Budget?

February 17th, 2009 at 12:20 am

Does it look like this, the top Google hit?

http://7million7years.com/2008/08/29/ideal-budget-allocation/

In lieu of anything else, it looks pretty close to me. I'd like to post my actual numbers next to it for a critique from you people, hopefully I'll have that ready in a few days. What I do know is mine is far from that! Oh, housing is dead on, but debt service is a TAD higher. Arghh.

So the numbers in descending order are :
Housing 30%
Transportation 14%
Food 12%
Entertainment/Recreation 7%
Clothing 6%
Misc. 6%
Debt 5%
Savings 5%
Investments 5%
Insurance 5%
Medical/Dental 5%
Total 100%

Some difficulties with quicken online are slowing me down, but luckily I found the help forums, and a fix for the problem I am having is due in February. In the meantime I'll probably just resort to Excel.

4 Responses to “So what is the Ideal Budget?”

  1. Chalatenango Says:

    I feel like we can all think of a million ways of how to spend $100.00, but not many of us know how we can take $100.00 and convert it to a million dollars.

    Being on budget at least helps ensure that money is allocated & spent properly.
    One especially important part of your budget is ensuring that savings is also included. Many of us fail to save. I too am struggling to save any money, but eventually I will build my savings up.
    At the moment my efforts are all on getting out of debt.

    Good luck to you.

  2. NJDebbie Says:

    Ralph, I must confess that I do not have a budget (written one that is). I should, but I don't. I do however, put savings religiously away from every paycheck. I realize that I am also lucky; we have a good income and a rental house that we managed to pay in full and generates income for us. There are 4 times in the year we fall short (when NJ property taxes are due Feb. May, August and Nov). If I were to have a budget, perhaps I wouldn't be robbing Peter to pay Paul durin those months.

    Your doing a great job trying to get yourself out of debt. Don't give up, stick to your guns at home. I have my fingers crossed for you.

  3. Ralph Says:

    Hey, if you are banking money, a budget isn't as necessary! It's when you fall behind that it is sort of critical. For years I did it in my head but you can see where that got me! I knew I was in trouble when I had to notch back savings to pay old debt. Luckily (I suppose), my company has a pretty minimal requirement to get the company match.

    Property taxes are a great illustration of how budgeting makes sense. Thank goodness I have the forced budgeting of escrow. Forced automatic monthly payment of a top priority expense makes sense. For the same reason I LOVE that my mortgage is on autopay. I worried a lot when it was up to me to pay quarterly taxes and insurance and monthly mortgage. Now it's a no-brainer.

    Thanks, NJDebbie, but I feel like it's all smoke and no fire right now. Or like birthing an elephant - very noisy and takes a long time. But it's a necessary first step and sort of fun too.

  4. Amber Says:

    I don't have a budget per se however I do sock away savings and contribute to an IRA account

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