Review your goals and what you value in life and see if you are spending money in the right places. Next you will want to determine if where you are actually spending your money is where you want to be spending your money. Compare Your Current Budget Percentages to Priorities & Goals: For example if your grocery budget is $300 and your income is $3,000 then your grocery budget is 10%. Percentage of Income = category dollars divided by Income multiplied by 100. Once you have put it all together calculate your percentages for each of those categories. If you are not already doing a budget, gather your banking and credit card statements together from the last few months and begin to categorize your expenditures. Review What Your Budget Percentages are Now:īefore you can decide what is right for you it helps to know where you are right now. So how do you figure out what the right budget percentages are for you? Follow this three step process help get you started. All other budget decisions are up for debate. The only “rule” you should be following is that you do not spend more than you make. Not only would your preferences not be like mine, but you probably don’t live where I do, have the same family size as I do or have an always sick dog like I do! If you were to follow my budget it would not include things you like to spend money on. Your household budget should match your life, and your preferences. Instead you need to do the work to figure out what the right budget percentages are for you.

While it would be really nice to have a nice little list of what to do with your household budget percentages, it does not always work that way. Knowing where to budget your money is no different. While there are tools to help you narrow in on the right career for you and tools to help you with different parts of your business, you still have to do the hard work of sorting through it all and deciding what is best for you. It would be a lot easier to start and run and business if there was a nice little checklist handed to you. It would be a lot easier to pick a career if you were just told what to do. There are many times in life when we wish someone would just tell us what to do.

Household budget percentages