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Dave Ramsey Budget Percentages

post #1 of 27
Thread Starter 

Below are Dave Ramsey's recommended budget percentages from the book Total Money Makeover.  

 

Does your family budget match his percentages?  Do you agree with them (why or why not)?  Which areas do you go over?  Go under?  Differ the most?

 

Dave Ramsey Budget Percentages

Charitable Gifts 10-15%

Savings 5-10%

Housing 25-35%

Utilities 5-10%

Transportation 10-15%

Food 5-15%

Clothing 2-7%

Medical/Health 5-10%

Personal 5-10%

Recreation 5-10%

Debt 5-10%

 

 

 

post #2 of 27
Quote:

Dave Ramsey Budget Percentages

Charitable Gifts 10-15%

Savings 5-10%

Housing 25-35%

Utilities 5-10%

Transportation 10-15%

Food 5-15%

Clothing 2-7%

Medical/Health 5-10%

Personal 5-10%

Recreation 5-10%

Debt 5-10%

 

 

 

 

Charitable Gifts - 10% or less since we're still working on building up savings and household goods

Savings - Does this include retirement and college funds because I don't see either on there. We're over 15% for retirement and need to bump it up to 20% in addition to other savings and investments.

Housing - Property taxes and insurance are about 2% of our gross income. We don't have a mortgage. We probably spend another 2-5% in maintenance and upgrades each year.

Utilities - easily 10%.

Transportation - Between gas, maintenance, insurance and registration fees - easily 15%

Food - We have special food needs so 20%

Clothing - If we were a larger family we'd have to spend more than 7%. I think DD's clothing budget alone is 5%. Hubby has special clothing needs for his job so we are probably 10% for all of us.

Medical / Health - We have special needs in this area 10%

Personal - We're very low in this category even with DD's extra curricular activities. If we add gifts (including Christmas) we'd be 5%

Recreation - about 2% if you also include entertainment

Debt - 0

 

If we assume the percentages are rounded, that brings me to 100%+/-. What about things like life insurance and taxes? I think all these numbers should be based on gross income.

post #3 of 27

I disagree with the fact that if you have debt than you should not be doing 10-15%  charitable gifts. That is a lot of money to me and would go towards my debt snowball paydown. I give when I can when things come up. I donate clothes to charities. I donate my time. I feel I do my part that way. 

post #4 of 27

Is this based on net income? Because I'm sure our medical would be higher with premiums.  Why does he have charitable giving so high? I'm not familiar with Dave Ramsey's plans.  We pay 10% tithing, so our's is within his range, but if you don't, then I think it's WAY too high. I think savings is WAY too low.  If you have debt, everything needs to be on the lower end of those ranges and the rest rolled over to the debt.

 

We are within those ranges on everything but savings. Housing is 34% and Food is 11%.  Everything else is in the lower end of the range and the rest goes to savings.

post #5 of 27
We are under for housing and we don't have debt but those percentages are quickly eaten up by groceries and medical
post #6 of 27
Currently for us housing is way over. It's currently at about 50%. Q
post #7 of 27

Don't Agree of the charitable giving there are other ways to serve. I donate time and items

 

Agree with the rest especially the housing category we are so excited to have our refinance go through. Our closing date is today. While it mean we owe more on the house and have another 4 years added on. It is dropping the percentage and means we can breath

 

Our housing has been at 40% of our net pay or 31% of our total income

It is dropping to 36% of our net pay and 28% of total income. 

 

I think we spend on what we need to spend on and not worry so much about the percentages still when housing takes that big of a bite. I know the refinance will allow is to knock out the small consumer debt, tackle the medical bills and cut our credit card debt in half.  After that we are still paying 170 less so throwing that on the card and hopefully we can pay it off this year and only have the auto and student loans.

 

 

 

post #8 of 27

If you are so far in debt I don't think you have any business giving at 10 to 15%. I think like others have said donating items or giving of time is just as important as just writing a check you really can't afford. Now if you can afford thats great but a person that has debt I would think should pay that off first.
 

post #9 of 27
Quote:
Originally Posted by brensmom View Post

If you are so far in debt I don't think you have any business giving at 10 to 15%. I think like others have said donating items or giving of time is just as important as just writing a check you really can't afford. Now if you can afford thats great but a person that has debt I would think should pay that off first.
 

100% agree. With incomes going down and expenses going up I don't see how in the world you should feel obligated to just give this money away. There are multiple ways to help others without hurting yourself in the process.

post #10 of 27

I think the percentages are reasonable. As far as giving to charity, obviously your bills and basic needs should come first, but I don't think his recommendations are for people who are barely getting by every month or are swimming in debt. We give 10% and it doesn't hurt us.

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