About the Episode:

• In this episode, we’ll break down how to create a balanced budget and what percentage of your income should go to each category in your budget. For example, what is a “normal” amount for people to spend on groceries, housing, etc.?
• In our Current Events segment, we’ll discuss updated interest rates for savings accounts, CDs, and mortgages.
• Our success story comes from Todd, who has been able to make considerable changes in his finances in just three months, including paying off a car loan and saving a month’s salary.

Average Percentages for a Balanced Budget:

1. Giving 10-15%
2. Saving 10-15%
3. Housing 15-35% (including utilities)
   1. Including escrowed taxes, insurance, PMI
4. House Payment < 25%
5. Transportation 10-20%
   1. Including gasoline, taxes, insurance, and repairs
6. Food 10-20%
7. Clothing 5-10%
8. Other Debts < 10%
   1. Not including house and car payments
9. Entertainment 5-10%
10. All other 5-10%

Resources:
FULLY FUNDED LIFE
IWBNIN Ladder
Tool: Known, Upcoming Expense Calculator

Related Monday Money Tip Podcast Episodes:Episode 09: Tithing - Gross vs. Net Income
Episode 120: Saving for KUEs
Episode 137: 5 Tip to Help You Absolutely, Positively, Actually Follow Your Budget
Episode 143: 5 Steps to Avoid Budget-Busting ExpensesEpisode 155: The Power of the IHHE Moment

Email info@iwbnin.com to ask questions or share success stories.