#156: A Balanced Budget

<p><strong>About the Episode: </strong></p> <ul> <li><span style="font-weight: 400;">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.? </span></li> <li><span style="font-weight: 400;">In our Current Events segment, we’ll discuss updated interest rates for savings accounts, CDs, and mortgages. </span></li> <li><span style="font-weight: 400;">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. </span></li> </ul> <p><strong>Average Percentages for a Balanced Budget: </strong></p> <ol> <li><span style="font-weight: 400;">Giving</span> <span style= "font-weight: 400;">10-15%</span></li> <li><span style="font-weight: 400;">Saving</span> <span style= "font-weight: 400;">10-15%</span></li> <li><span style="font-weight: 400;">Housing</span> <span style= "font-weight: 400;">15-35% (including utilities)</span> <ol> <li><span style="font-weight: 400;">Including escrowed taxes, insurance, PMI</span></li> </ol> </li> <li><span style="font-weight: 400;">House Payment</span> <span style="font-weight: 400;">< 25%</span></li> <li><span style="font-weight: 400;">Transportation</span> <span style="font-weight: 400;">10-20%</span> <ol> <li><span style="font-weight: 400;">Including gasoline, taxes, insurance, and repairs</span></li> </ol> </li> <li><span style="font-weight: 400;">Food</span> <span style= "font-weight: 400;">10-20%</span></li> <li><span style="font-weight: 400;">Clothing</span> <span style= "font-weight: 400;">5-10%</span></li> <li><span style="font-weight: 400;">Other Debts</span> <span style= "font-weight: 400;">< 10%</span> <ol> <li>Not including house and car payments</li> </ol> </li> <li><span style="font-weight: 400;">Entertainment</span> <span style="font-weight: 400;">5-10%</span></li> <li><span style="fon