12/22/2023 0 Comments Personal budget charts![]() You add a buffer of 15% which is calculated at $225.You estimate you spend $1,500 per month.When calculating your expenses, also factor in unexpected bills, such as unplanned car repairs.Ī good rule of thumb is to add an extra 10 per cent to 15 per cent. A forgotten bill really throws a wrench into your savings plan. Remember that being thorough when you add up expenses is important in creating a realistic budget. Some expenses are intermittent, such as insurance payments, so to get the most accurate financial picture you can calculate an average for six months to a year. Assess your expenses by consulting your bank statements, receipts, and financial files. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.This is how much money you spend. does not include the entire universe of available financial or credit offers.Įditorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. the order in which they may appear within listing categories. This compensation may impact how and where products appear on this site, including, for example. The offers that appear on this site are from companies which receives compensation. What does your pie chart look like? Tell us in the comments!Īdvertiser Disclosure: is an independent, advertising-supported service. If your pie chart looks drastically different from the ideal pie chart, check into some ways to increase your savings, decrease your debt payments, manage your insurance costs and cut your overall spending. You may even qualify for the retirement savers’ credit! And if you are self-employed, you have a number of options for saving for retirement while reducing taxes. Roth IRA contributions will not reduce taxes now, but will help you save on taxes later. Traditional IRA contributions will reduce taxes if you are under certain income thresholds and can deduct contributions. Additional 401(k) contributions will reduce your taxes the amount depends on your tax bracket. To reduce your taxes, consider deferring more toward retirement or education savings. Risk Management (insurance) and Taxes will depend on your individual situation, but in general, you should strive to spend as little as possible in both categories while maintaining appropriate insurance coverage. Look at 16 Ways to Lower Your Housing Costs if you are spending too much on housing. You should strive to be over the ideal percentages for retirement and other savings. ![]() If you can help it, you should actually strive to be under the above percentages for the housing, other debt payments, and daily spending categories. ![]() And if you want to retire at 50, you might need to save more than 10% of your income for that purpose! But in general, the chart above is a good starting point for assessing your own spending. If your house is paid off, you should be spending much less than 28% of your income on just the taxes and insurance. ![]() If you have 6 kids you want to send to college, you need to be putting more in the “other savings” category. The “ideal” pie chart I showed above might not be quite ideal for you depending on your current situation and future goals.
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