% of Income

**frugal is fun** · 04-21-2011, 10:58 AM

does anyone know or is there a site someplace I can look that lists the % of your income you "should" be spending on mortgage, retirement, savings, etc?

I feel like I'm out of whack lately.

**Greebo** · 04-21-2011, 11:08 AM

Per Dave:
Charitable gifts 10-15%
Saving 5-10%
Housing 25-35%
Utilities 5-10%
Food 5-15%
Transportation 10-15%
Clothing 2-7%
Medical/Health 5-10%
Personal 5-10%
Recreation 5-10%
Debts 5-10%

Of course, if you make $1,000,000 a year, you shouldn't be spending 10% on food...

**frugal is fun** · 04-21-2011, 11:33 AM

Thank you Greebo!

would retirement be included in savings?

**Greebo** · 04-21-2011, 12:00 PM

No, per Dave retirement is 15% of gross while the above are of net.

**Nishu** · 04-21-2011, 12:52 PM

Originally Posted by Greebo

Per Dave:
Charitable gifts 10-15%
Saving 5-10%
Housing 25-35%
Utilities 5-10%
Food 5-15%
Transportation 10-15%
Clothing 2-7%
Medical/Health 5-10%
Personal 5-10%
Recreation 5-10%
Debts 5-10%

Of course, if you make $1,000,000 a year, you shouldn't be spending 10% on food...

Do people really go by that guideline? That doesn't seem too hard. Maybe we'll just do this can call it good.

**gmarie** · 04-21-2011, 12:57 PM

Thanks for the breakdown, but I'm curious where you found it? Was it in his book?

Why would DR say 5-10% saving, and then separately, 5-10% debts. Wouldn't you be doing one or the other?

**Greebo** · 04-21-2011, 01:21 PM

Originally Posted by gmarie

Thanks for the breakdown, but I'm curious where you found it? Was it in his book?

Why would DR say 5-10% saving, and then separately, 5-10% debts. Wouldn't you be doing one or the other?

The recommended allocations is very general and does not assume you are following the TMMO plan. It's more of a "life balance" chart than a gazelle intense one.

**Ceashels** · 04-21-2011, 02:12 PM

Gail Vaz Oxlade also recommends similar numbers. The Life Pie gailvazoxlade.com

The percentages are:

* 35% for housing (mortgage/taxes, rent, utilities, insurance, maintenance),
* 15% for transportation (car payments, gas, repairs, insurance, parking, transit),
* 10% for saving (long-term saving),
* 15% for debt repayment, and
* 25% for life (everything from groceries to entertainment, medical to childcare… In fact, everything that’s not in the other four categories.)

**Nishu** · 04-21-2011, 03:50 PM

Originally Posted by Ceashels

Gail Vaz Oxlade also recommends similar numbers. The Life Pie gailvazoxlade.com

I like this one better.

**Ceashels** · 04-21-2011, 05:56 PM

Keep in mind Gail works in Canada so if mortgages, retirement plans and health care are different .... her percentages may not be as spot on in the USA. I think overall if you look at both and take what works for your budget ... like we all do in the long run. hehehe

**mzpepper** · 04-21-2011, 07:51 PM

Thanks for sharing Gail's website. I did not even think of looking for it and I watch her show every week. I ran my numbers through both formulas and the main category I am having trouble with is transportation. No surprises there. If I lived in a city I guess I could get around cheaper but living in a rural area and driving a (PAID FOR) truck I have really taken a hit in the transportation budget recently.

**miss_cas** · 04-24-2011, 08:17 PM

The max for housing should be 40% and that's including utilities, insurance, taxes and maintenance. Spend 15% on transportation max including car payment, taxes, gas, maitenance and insurance.