Percentages in your Budget

Today I just want to cover a short blurb on the importance of using a budget and more specifically a percentage based budget.

A budget is an invaluable tool for anyone because it allows us to monitor and control our spending habits.  When we see how much we spend on an unnecessary item we then way the true importance of that item in our lives.  Case in point is getting a treat from the vending machine usually just $1 daily adds up to being about $20 bucks in a month.  After we see the issues in our spending habits we can then take control and change them.  So by taking out that vending machine habit and instead spending the 20 bucks on a thing of greater value perhaps saving or a steak dinner or something.

My personal favorite type of budgets are the percent based one because they grow and shrink as you earn more or less.

Here is an example layout from Dave Ramsey and his gazelle budget tool:

Charity    10%
Saving     10%
Housing   25%
Utilities     5%
Transportation  10%
medical     7%
Misc.         33%

Source: http://www.daveramsey.com/specials/mytmmo-gazelle-budget/


So there you have a quick and simple budget, if you have not started I recommend getting into one today.

Also see:

Financial Peace By Ramsey, Dave/ Ramsey, Sharon 
The Total Money Makeover By Ramsey, Dave