Budgeting percentages

Dave Ramsey divides expenses into 11 different budget categories. He suggested a practical household budget % to each category from your after-tax take-home pay

Budgeting percentages

Dave Ramsey Percentages – Giving – 10% – Saving – 10% -15% – Food – 10% – Utilities – 5% to 10% – Housing – 25% – Transportation – 5%-10% – Health – 5% to 10% – Insurance – 10 to 25% – Recreation – 5% – Personal Spending – 5% – Miscellaneous – 5% to 10%

What is Dave Ramsey’s 25 rule?

According to the 25% mortgage rule, you should not buy a house that exceeds the monthly house payment by 25%

What is the 30 rule?

The 30 rule states that one should not spend more than 30% of the after-tax dollar on housing.

The 1% rule

Based on the 1% rule, the monthly rent collection from an investment property should be equal to or greater than the 1% of the total investment to make a profitable purchase.

What are Dave Ramsey’s four walls?

1. Food,  2. Utilities,  3. Shelter, and  4. Transportation

What is the 70 20 10 budget rule?

Spend 70 percent of after-tax income on expenses, 20 percent goes to saving, and 10 percent loan repayment and charity.

What is the 50 30 20 budget rule?

- 50% of after-tax income   goes for necessities - 30% of the income that   goes towards non-   essential items - 20% of income for the   future

What is the 80/20 rule in savings?

20% of the after-tax income should go to savings and 80% into needs and wants. The main focus of this rule is the 20% saving.