Budget Categories: Where Our Money Goes

I’m always interested in what other people spend their money on.  So I thought I would share what categories our budget includes.  I’m asked often what our budget looks like, so here you have it.  Mind you, our budget  has changed over the years and even changes monthly based on our changing needs.  If you haven’t started a budget, these may give you an idea of what to budget for. 

 

 

Categories in our budget and how we organize them (from top to bottom):

*I’ve included some amounts for comparison (this is during February).

 

Tithe/SEVEN (Tithe is the first 10% of our income; SEVEN is the campaign our church is involved in right now, so this is in addition to the tithe.  This category is THE most important factor to our wealth!)

Utilities: Gas – $60

Utilities: Water – $70

Utilities: Electric – $50

Car: Gas – $150 (gas for Ryan’s travels is separate, under the Reffing category)

Car: Other

Car: Insurance

ESA (B’s college fund) – $167 (this is the amount Dave Ramsey recommends, $2000/yr.)

HOA

Ring Insurance

Home Property Tax/Insurance

Gym – $9 (we got a ridiculous deal for paying once a year)

*Italicized items are bundled into our ESCROW, which we pay 1 time a year…or 2 for car insurance)

Medical/Dental

Internet/Cable – $75 (Time Warner, we have Basic cable)

Phone

Tan – $5 (frozen membership, I just pay for spray tans when I need them)

House (anything needed for the house)

Groceries – $300

Dining – $120

Entertainment – $20 (this will go up when I have a husband again   Basketball has him right now)

Nails/Hair – $85-120

Savings (retirement) – Dave Ramsey suggest a ROTH IRA and the maximum you can contribute is $5500/yr. per person, which comes out to a little over $450 a month per person

Beckham (diapers, toys, etc…) – $100 (this puzzles me, but somehow we spend this much)

MOPS (my mom’s group)

Soccer – $65-75 every other month

Shopping – $50

Birthdays

Reffing (food and gas when Ryan travels)

Misc. (we use this category to round off our budget to an even number)

Other categories that might occur – Christmas, Valentines, Anniversary, Super Bowl, Baby Showers, Make-Up, etc…)

 

As you can see, we are very detailed, trying to account for every expense.  It really helps not having the mortgage, car payments, or debt.  With me staying home, it was NECESSARY for us to eliminate those categories.  Plus, my husband has a phobia of wasting money on interest.  If you have those categories in your budget, I suggest annihilating them by focusing on your debt (not including mortgage) and car first, then your mortgage. 

 

Click HERE to see how to eliminate your car payments. 

 

As far as your debt (not including mortgage), follow Dave’s “snowball” plan. 

 

As far as your mortgage, the key is to buy the right house first.  Your mortgage should NOT be more than twice your household’s total annual income.  For example, if your household income is $80,000, your loan should not be more than $160,000.  Of course, this a general rule, but the point is, your mortgage should be lower than you think it would be (definitely lower than what most Americans buy).  Also, get a 15 year note!!!

 

Again, these suggestions are for those wanting to pay off debt and build wealth.  These rules are what the average millionaire does…it’s not for everyone.  It’s tough!  I can’t tell you how many times I yelled at questioned Ryan about paying off our house. Or how many times I get jealous of others’ fancy lives. But, I stop the Eeyore attitude and thank God for what I do have and the gift of staying home while Beckham (and future kids) are little! My little gift from Heaven….