Some Potential Issues With The Dave Ramsey Budget Percentages More eating out? New clothes? It’s up to you! Miscellaneous: 5-10%Įvery budget should include some wiggle room for expected expenses or little things that just happen to pop up. Personal spending money can be spend on anything you want. Now this is the fun category, this can be eating out, going to the movies, concerts, whatever is entertaining for you! Personal Spending: 5-10% The insurance category is for allll the insurances! I’m talking homeowners, renters, health, car insurance, life insurance. Pretty much anything and everything health related (minus insurance!). The health category is for health related costs, like fees for annual checkups, copays for any medication, costs of any over-the-counter medication. That means gas, car tag renewals, oil changes, etc. Your car payment and any other necessary maintenance for your car go into this category. This housing category is rent, and if you own a home that means mortgage, your HOA, any PMI fees, and insurance and taxes.įor some people putting only 25% of their income into housing isn’t very realistic, but I think 25% is a good starting point, and it’s your budget after all, you can change it up to fit your own life. Utilities include your water, electricity, trash services, and gas/propane. If you’d like to lower your food spending, check out these 10 cheap meal plans. The food category includes regular groceries, and can include eating out (or this can be part of recreation or personal spending). This category also includes any investing you’d like to do. This savings category includes short-term and long-term savings, like emergency funds, sinking funds, and a house nonpayment. According to Dave Ramsey, this category is necessary to have, even if you’re in debt or have other investing/savings goals. This giving category is for things like tithing and giving to charity.

Now that you know what categories are included and what percentage of your income you should be spending in each category, let’s go over each one in more detail. 5 Sources Dave Ramsey’s Recommended Budget Categories

Percentages of a household budget