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          Percentage of take-home pay allotted to each budget category

                                              (Percentage Guildelines)


Budget CategoryMonthly Take-home Pay
          $1 - $1,499 $1,500 - $2,499 $2,500 - $2,999 $3,000 - $3,499 $3,500  & up
Housing 38% (.38) 35% (.35) 35% (.35) 35% (.35) 35% (.35)
Transportation 15% (.15) 15% (.15) 12% (.12) 12% (.12) 12% (.12)
Food 15% (.15) 15% (.15) 12% (.12) 12% (.12) 10% (.10)
Entertainment 3% (.03) 5% (.05) 5% (.05) 5% (.05) 6% (.06)
Clothing 5% (.05) 5% (.05) 5% (.05) 5% (.05) 5% (.05)
Medical/Dental 5% (.05) 5% (.05) 4% (.04) 4% (.04) 4% (.04)
Miscellaneous 5% (.05) 5% (.05) 7% (.07) 7% (.07) 7% (.07)
Insurance 4% (.04) 5% (.05) 5% (.05) 5% (.05) 5% (.05)
Education/Child Care* 10% (.10) 8% (.08) 6% (.06) 5% (.05) 5% (.05)
Debt Payments ** 5% (.05) 5% (.05) 5% (.05) 5% (.05) 5% (.05)
Saving 5% (.05) 5% (.05) 5% (.05) 5% (.05) 5% (.05)
Investment 0% (0) 0% (0) 5% (.05) 5% (.05) 6% (.06)

These percentages are for an ideal budget.  Since it is nearly impossible to have a perfect, ideal budget, these percentages should be used as a guideline or starting point.   If your actual spending in any category is significantly higher than what is given here, then you may be overspending in that category.  Significant overspending in any category makes it difficult to stay within your budget which will likely lead to eventual financial difficulty.

* If you have education or child care expenses, you must deduct the percentage given for this category from other categories so that all percentages add up to 100%

** When you pay off all of your debt (not counting your mortgage) and your debt payments become zero, you may add this percentage into other categories as desired.
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