FreeDigitalPhotos.netCreating a budget can be intimidating. We see all the different variations and hear all the different opinions and it gets overwhelming. Fortunately, there is a way to create a budget that is easy and actually makes sense. It takes into account your income and relieves the guessing game.

Using the percentage-based budget method is easy because you are basing your budget on a recommended percentage of your income. These percentages are what most personal finance gurus recommend to live a sustainable life.

Consider Your Unique Situation

Your situation is unique so be sure to consider all your financial obligations. If it is still overwhelming, consider simplifying your finances by talking to a finance professional, reading a good personal finance book, or taking a financial literacy course.

Recommended Budget Percentages

The recommended percentages for dividing your income are as follows:

 

Charitable gifts 10-15%
Saving 5-10%
Housing 25-35%
Utilities 5-10%
Food 5-15%
Transportation 10-15%
Clothing 2-7%
Medical/Health 5-10%
Personal 5-10%
Recreation 5-10%
Debts 5-10%

Here are a few great articles to read further:

Basic Percentage Budgeting

http://liveloveleslie.com/2011/06/16/basic-percentage-based-budgeting/

A Deeper Look into the Percentage-Based Budget

http://www.thesimpledollar.com/2010/10/07/a-deeper-look-at-the-percentage-budget/

How To Work Off a Percentage Based Budget, and Save At Least 10% of Your Income

http://www.improvingyourworld.com/finances/how_to_work_off_a_percentage_based_budget_and_save_at_least_10_of_your_income_001906.html

10 Recommended Category Percentages for Your Family Budget

http://www.leavedebtbehind.com/frugal-living/budgeting/10-recommended-category-percentages-for-your-family-budget/

A few percentage-based calculators to create an easy budget:

Green Path Calculator

http://www.greenpath.com/university/calculators/budget-percent-calculator.htm

Crown Ministries Calculator

http://www.crown.org/Tools/Calculators/Budgeting_SpendingPlan.asp