What Should My Monthly Budget Be?

What percentage should your monthly budget be?

Start with the Basics If you’re new to budgeting, using the 50/30/20 rule is a great starting point.

With the 50/30/20 budget, you allocate 50% of your income toward living expenses and necessities, 30% toward wants, and 20% toward debt and savings.

Here’s how this would look.

Say you bring home $3,000 each month..

What is an ideal budget?

The ideal budget is simple: it gets you maximum results with minimal effort. How do we get there? Minimize the number of your accounts. Be intentional about the number of categories you use. Consolidate as many outflows as possible into a single cash withdrawal.

What is the 30 rule of income?

The 50-30-20 rule puts 50% of your income toward necessities, like housing and bills. Twenty percent should then go toward financial goals, like paying off debt or saving for retirement. Finally, 30% of your income can be allocated to wants, like dining or entertainment.

How should a beginner budget?

Basics of budgeting for beginnersStep 1: List monthly income.Step 2: List fixed expenses.Step 3: List variable expenses.Step 4: Consider the model budget.Step 5: Budget for wants.Step 6: Trim your expenses.Step 7: Budget for credit card debt.Step 8: Budget for student loans.More items…•

What should a monthly budget include?

Your needs — about 50% of your after-tax income — should include:Groceries.Housing.Basic utilities.Transportation.Insurance.Minimum loan payments. Anything beyond the minimum goes into the savings and debt repayment category.Child care or other expenses you need so you can work.