To get started, grab your Dave Ramsey Budget Forms. When we are not paying attention to where your money is going, you will overspend and not reach your bigger goals, like paying off your debt. The most important thing about budgeting is being intentional with your money and being aware of your spending. If you only make $2000 a month and your personal spending category is taking up 20% of that, then you need to adjust your spending habits. Your budget is personal but if you are looking for ways to cut spending, this is a start. However, if your housing costs are 50% then you should consider your options about lowering costs. If your housing costs are really 28-30% that doesn’t mean you should move. It is not a hard and fast rules for percentages either. What you will notice is that they are ranges, so you have some leeway in your budget. With his plan, he has his own budget categories and percentages that are slightly different than the general percentages.ĭave Ramsey’s budget percentages and categories are: The first thing to do before even starting the baby steps is to but your budget together so you have make your plan. Dave Ramsey Recommended Budget Percentages:ĭave Ramsey’s baby steps have helped millions of people pay off their debt by following a simple plan. You will have to make adjustments in your budget if that is the case. Remember these are ranges and if you are on the higher end for each category, it will be over 100%. In general the recommended amounts for certain categories are: It can help you make adjusts if needed in your spending habits. What is good about determining your percentages is that you can see if a category is way out of line and needs to be adjusted. If you have no clue what a zero-based budget even is, start with this Budgeting for Beginners: A Step-by-Step Guide. If you are doing a zero-based budget month-to-month and sticking to it, that is the most important factor for your financial success, not percentages. In the grand scheme of things, it is a small detail in your big plan. It’s also important to not stress about the percentages month to month. It’s important to keep in mind that when it comes to your budget and percentages, that it may not be exact. There are general recommended household budget percentages and there are also Dave Ramsey budget percentages. The more you break it down the easier it will be to stick to because you will remember a lot of little things that you often forget. These categories are very broad and can be broken down even further for your personal needs. It is your preference on how you want to calculate it.įor me, my house insurance is covered in my mortgage payment, so it is included in housing costs. Some people include house and vehicle insurance in those main categories. This can include your buffer for your checking account Miscellaneous– this category is for little things you forgot or that don’t fit into another category.Insurance– health insurance, vehicles, housing, life, and disability (you can include house and vehicle insurance in the other categories).Healthcare– includes everything except your insurance premiums, your copays, medications, and doctor bills.Entertainment– anything you do for fun, including kids sports and activities, gym memberships, concerts, and vacation.Savings– saving for emergencies and retirement.Giving- this includes tithing or giving to charities.Utilities– power, water, sewer, trash, internet, and phone.Personal Spending– clothing, hair and nails, decor, massages,.Transportation– all costs including car payment, taxes, public transportation, maintenance and storage/parking fees.Food– groceries, fast food, and eating out.House costs– rent/mortgage, maintenance fees, taxes, and HOA fees.However, all those little categories typically fall into more general categories.Īlso check out this list of 100+ budget categories. When making a zero-based budget, you may have a lot of different categories just so you can keep all of your expenses accounted for.
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