Creating 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
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
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
