Expenses percentages?

**disneysteve** · 05-26-2008, 11:22 AM

One breakdown that I like is from "All Your Worth: The Ultimate Lifetime Money Plan" by Elizabeth Warren:

50% for "Must Haves" which are:

A place to live, utilities, food, medical care, insurance, transportation, and minimum payments on your "can't escape legal obligations". Note that they don't include clothing in "must haves"...they say that you likely already have a closet full of clothes.

20% for savings:

30% for wants:

**budgetmom** · 05-26-2008, 11:33 AM

Thank you disneysteve you've always been a help. Does that book break it down any farther than your example? 50% for the have to have stuff, but does that mean of the 50% that 25% is rent and 15% is utilities. I have been saving for the move for about a year now and most of that savings will be depleated by it. So, there can't be much room for error here, expecially with three kids, ya know? Just want to make it happen before the new school year.

**budgetmom** · 05-26-2008, 11:40 AM

just looked up the book at my public library, they don't have any copies avalible to even check out anymore.

**disneysteve** · 05-26-2008, 11:48 AM

Originally posted by budgetmom View Post

Does that book break it down any farther than your example?

I don't know if they do and I don't have a copy of the book. Still, I think you can work with that 50% figure. The point is that it doesn't matter how it breaks down, as long as the total doesn't exceed 50%. In some parts of the country, housing will be more expensive but insurance costs may be lower. In other areas, utilities may be particularly high but food costs are more moderate. So breaking it down by category can be difficult and inaccurate.

Also, realize that 20% is designated for savings. Most Americans, of course, aren't saving 20%. But that gives you some room to play. If you knock savings down to 15%, you can up Needs to 55%. Just don't knock down savings to bump up the Wants.

**budgetmom** · 05-26-2008, 12:04 PM

Good point. I have been currently been holding back around 18% for savings, but I know that my wants have at times exceeded the 30%. Guess it's time to really buckle down! Moving is quite costly! I found that book at a library in the city. (I'm in the burbs) so I will go and check it out. Any other good reads you would recommend while I'm out there?

**MaryB26** · 05-26-2008, 04:36 PM

Hi Budgetmom,
This is my first post to this forum. I am a long time lurker here and when I saw your post I remembered that crown . org had some percentage guides. Hope these are what you are looking for. I can't post links or web sites yet because I don't have 15 posts so I will put spaces between the words. The site is www . crown . org (it is Larry Burkett's Crown Financial Ministries site).
Click on the Financial and Career Tools tab at top of page; then click on
Financial Forms and Downloads and that will take you to the Percentage Guides in PDF format. Hope this helps.
MaryB26

**Aleta** · 05-27-2008, 01:34 PM

In the book on ALL YOUR WORTH, part of the 20% savings is as Steve says. When you are in debt Elizabeth Warren uses 15% of the savings for retirement and other long-term savings and the 5% she uses for debt repayment. This would bei in additional to the minimum payment amount you make.

While most of us use our %'s off the gross salary, her %'s are off the take home.

Some book dealers sell used books. Amazon.com, Abebooks.com. I really d reccommend her book to you.

**poundwise** · 05-27-2008, 04:10 PM

I have heard of, and am interested in reading, All Your Worth for myself.

In the meantime, I'll contribute to the thread:

Crown Financial Ministries offers some percentage guides, depending on what type/size of family you have. They also have other free publications for download.

Dave Ramsey also has some percentage recommendations as a part of his Financial Peace program. (Note: This link is to a PDF file.)

Expenses percentages?