Is this a good expenditure budget?

[hardboy]

Hi

Although I don't need to do this atm, I was just wondering and thinking how would I allot our family money if I had my own family and was earning at a similar level as we currently do.

Of course, I am too young atm and will need to do something like this only years from now.

But, is the budget given below something people would like to follow?

I am talking of net family income after taxes, that is post-tax income combined of all family members.

HOME/RENT(Including water/electricity/renovation etc)
15%
This could be zero too in my case if I don't buy a house and just live in the house which I inherit from my parents. But in case I need to buy one, I would keep it to max 15%.

TRANSPORT(All cars minus old car selling costs, including petrol, maintenance etc)
15%

FOOD(Grocery etc, and other house expenses)
10-15%, MAX 15%

TRAVEL(Vacations etc)
5%

APPAREL&ACCESSORIES
5%

OUTINGS(Restaurants etc)
5%

GADGETS(TV, computer, mobile phone etc)
5%

MISC(Services like barber, health, driver, some thing here and there)
5-10%

ADDITIONAL EXPENSES
<5%

TOTAL
70-80%

BALANCE = SAVING = 20-30% (+15% in case you don't need to buy a house)

Savings are for education, marriage, pension and misc.

Does this sound good for other people too? What changes do people usually make????

 

[hardboy]

@MODS

Posted in the wrong section by mistake. Please shift to OffTopic

 

[wajed]

Education.

 

[dave_the_nerd]

Sounds like a homework assignment to me.

Rent/housing costs usually work out to 30&#37; or so of a single person's pre-tax income. Most financial planners will recommend keeping it below 25% if possible. Even people who own their homes outright, have maintenance, insurance, and property taxes, so it'll never be 0%.

That's pre-tax, mind you.

Food will tend to come out to about $150 a month per person if you eat cheap but healthy, $250+ if you eat expensive and healthy. Not really a fixed percentage. Yes, you can subsist on ramen, oatmeal, and Aldi produce for $50 a month. But I wouldn't if I didn't have to.