![]() I mentioned that Dave Ramsey is the money guru, but what makes him great for budgeting beginners? He tells it to you straight. Why should I listen to Dave Ramsey recommended percentages? Miscellaneous: 5-10% – everything else that doesn’t fit in the other categories.Personal Spending: 5-10% – the little things, i.e., hair cuts, clothes, subscription boxes, etc.This is such an interesting category, as what one person feels is a necessity another may feel it’s an “extra.” Be willing to have an open mind about what truly is a negotiable expense. Entertainment: 5-10% – going out & having fun.So find an independant insurance company and buy a term policy. AND the older you are the more expensive it becomes. Yes! If you have a family then you need life insurance! Pro Tip – don’t go through your workplace, if you leave that job there goes your insurance. Insurance: 10-25% – health, auto, renters & mortgage, life, etc.Health: 5-10% – prescriptions, co-pays, deductibles, dental coverage, vision coverage, etc.Or this includes public transportation methods as well. Transportation: 10% – car payments, gas, oil changes, etc.Housing: 25% – this covers principal payments on loans, interest, taxes, HOA, etc.Utilities: 5-10% – water, cable, gas, trash, etc.If snacks and Starbucks don’t fit within your budget, then consider moving those items to your personal splurge spending. Think meals, pantry staples, fresh produce, dairy and meats. ![]() For this category you need to prioritize your basic food items. Food: 10-15% – your food budget includes groceries and eating out, coffee shops, etc.These can be cash envelopes or more permanent seperate bank accounts to be used as sinking funds. Don’t forget to set aside money for your big financial goals, the dream vacation, the backyard upgrade, etc. Saving: 10% – get your $1,000 emergency fund set, then pay off your debt, then start to build a 3-6 month emergency fund, and then invest 10-15% of pay into tax-advantaged retirement accounts.So he gives generously to help further the word and practise. ![]() He feels that he is just a steward of the money in his account.
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