Making a budget based on income percentage is one of the fastest ways of getting out of credit card debt faster. According to business in the Gambia, the summer time I usually the best season to check your household budget, you need to consider all the spending you and your household will have to endure in the next few months of summer these include; summer travel expenses, back-to-school supplies and summer camping expenses for the kids. The beginning of the summertime is usually the ideal time to take out the calculator and look at your finances. You can find title loans in Glendale, Az, if you are struggling with your finances.
According to experts on business in the Gambia, you need to keep the costs of maintaining your house (including your mortgage. Insurance, and taxes) to no more than 30% of your income budget. Some experts even suggest 25% of your income, depending on the cost of the home and associated expenses. If you have to include all other expenses needed to run your house (including utilities, kitchen utensils and cleaning products and so on), you may have to break up the housing budget in the following way;
- Mortgage should not be more than 58%,
- Utilities should not be higher than 21%,
- Furnishings and other household equipment should not be higher than 9.2%,
- Extra household operations such as hiring maids and lawn mowing should not be higher than 6.8%, and
- Housekeeping supplies should not take more than 6.8%
Utilities are variable costs, and you may never be too sure of what you will pay by the end of each month. Experts do recommend that couples must create a spreadsheet where they can enter their monthly utility bills and track such costs from month to month. With spreadsheet tracking you can take note of the patterns and fluctuations in the utility bills, hence you can change the way you use energy in your home, for the purpose of beating down those utility costs.
Food and Transportation budget
The general consensus among experts is to allocate between 5 and 15% of your budget to food. According to business in the Gambia, food accounts for about 13% of average American household budget, this means, if you are spending about 30% of your budget on food, then you may have to ration your food intake in some ways.
Aside from your car costs, you still have to pay for repairs, maintenance, and gas in your car. If you like to drive everywhere you go, then you have to be more prudent than those who drive occasionally. The general rule is that if your car is your sole transportation means, then you must not spend more than 10% of what you earn annually on the car. You don’t have to scold yourself if you spend more than 10% of your income on your car, the average American household spends roughly 17% of annual income on their cars.
Unexpected costs or expenses will always show up one way or the other. Aside from the basic expenses on housing, utility, food, and transport, you still have to create a budget for healthcare, insurance, entertainment, debt, and clothing. The unplanned expenses are usually the ones that may throw us off-balance when preparing our budgets. The question Experts believe that the key to incorporating unplanned components of your budget is to wittingly trim down your budget so that you wouldn’t have to live from paycheck to paycheck. Wittingly trimming down your budget or income will ensure that you have a little left over. Having 25% leftover may be great but even if you can only save 5% as a leftover, that will greatly help in offsetting some of your miscellaneous expenses especially when you need to do some miscellaneous household expenses such as replacing your old coffee table. is; how do you plan for the unplanned?
Experts believe that the key to incorporating unplanned components of your budget is to wittingly trim down your budget so that you wouldn’t have to live from paycheck to paycheck. Wittingly trimming down your budget or income will ensure that you have a little left over. Having 25% leftover may be great but even if you can only save 5% as a leftover, that will greatly help in offsetting some of your miscellaneous expenses especially when you need to do some miscellaneous household expenses such as replacing your old coffee table.
We don’t budget for most unexpected costs, even the ones we budgeted for such as the holidays can trigger some unexpected can trigger some financial tsunamis that can lead us into unplanned debts. Other miscellaneous expenses that can crop up suddenly include; vehicle tags back-to-school expenses, traveling to your child’s sporting or social events, are predictable yet they can add to one’s budget quickly, hence they must be planned for. If possible, you can accommodate unforeseen spending into your extra household costs which should be about 6.8 of your income budget. If you probably have to take a loan to meet up with some of your expenses and then you should consider a reputable place to find title loans in Glendale, Az.
In conclusion, it always pays to create an extra source of income aside from the regular source, this will help in the supplementing of the extra expenses that may show up, especially when we are not prepared for them. An extra source of income will also help us increase the budget for each component of our spending gradually. With extra sources of income, the financial burden of meeting up with miscellaneous spending will be much easier to bear.