How much of your income should be budgeted for your housing expenses?
How about for paying on debts?
Here's a list of "recommended budget guidelines" for percentages of your gross monthly income:
- Housing 35%. This includes mortgage or rent, taxes, repairs, improvements, insurance and utilities.
- Automobile or public transportation 20%. Vehicle loan payment, gas, oil, repairs, insurance and parking.
- Debt 15%. Credit card payments and personal loans.
- All other expenses 20%. This includes food, insurance, medical, clothing, personal items and childcare.
- Savings 10%. Stocks, retirement accounts, real estate and savings accounts.
