You might have some questions on what category each bill falls into. Your cell phone would most likely be a utility expense, as well as your cable and internet bills, unless you consider those recreational expenses.
If you add up all these percentages you’ll get 114%, so clearly the experts are assuming you have most of these expenses but not all. So you’ll have to juggle the numbers around to fit your needs. These percentages won’t include all of your spending either, like the wedding present you had to buy for your cousin or the emergency new tire you needed when you got your flat. This means random expenses will either have to come from your savings or you’ll need to reduce one of the other spending categories, such as reducing your food expenses by eating out less.
Step 3: Rearrange your spending and eliminate splurges
So what happens if you find out that your rent accounts for 50% of your income or you discovered that your credit card bill is taking up more income than your food and clothing expenses? Well, over time, you’re going to have to make some changes. You may need to ride out your current lease and spend only the bare minimum on food, recreation and clothing until then. For other expenses, a little research can do a world of good.
Try calling your cable and internet provider to negotiate a lower rate. If you have one credit card that you’ve had for a while, and are pretty responsible with making the minimum payment each month, give them a call and ask for a reduced finance percentage. You probably won’t miss your daily $4.00 caffeine and sugar kick if you pack a drink or make coffee at home instead. If you eat out too much and can’t see yourself hard at work in the kitchen every evening, consider ordering from a pre-prepared meal service, which is usually much cheaper (and healthier!) than carry-out.
Now sit back and watch your bank account grow!
This post was updated April 2, 2013.
Thanks for the tips, they really are helpful to a person who is about to get out into the real world and live on their own.
THANKS FOR THE TIPS I HOPE I CAN FOLLOW THEM IM ABOUT TO EXPERINCE THE REAL WORLD.
These are extremely helpful tips, thank you very much. these will definitely help me when i move out for college.
Thanks, used this to help me make it when I got kicked out on my 16th birthday. Gee, thanks mom.
Thanks apartments.com, this really helps.
So….. all of the previous comments are from people who are still living at home, right? Who are not in the “real world” yet?
Huh…..GOOD LUCK!!!!!!!!!!!!!!!!!
This Really does Help. I moved out on my own and started to realize I was living check to check. Though I knew I should have had around $600 left over after all bills were paid ( that included 150 entertainment for a month). So I did do a money Journal and realized that I was Nickel and dime-ing my money away… (Cigarettes, Fast food, Drinks, cover charges) For the ones getting ready to live on your own, be sure to budget entertainment. And think of less and inexpensive ways to have fun with friends like have a few people over and having a BBq with everyone pitching in on Food… That’s what I had to do!
I just moved out on my own and I feel as though you can never have enough information that can help you budget your money especially when your on your own. This is a very helpful tip, Thanks.
I have never budgeted and spend way too much money, especially on clothing and things that I really don’t need. I have had to make loans and take money out of savings and CDs just to make ends meet. I am a single mom and get no support from my daughter’s father, so it is time I change my spending habits. Thank you for the tips. Today, I will begin to apply them. And, I pray to Jesus that he will help me with my unecessary spending. Thanks again. Heidi.
the savings account is a big thing. you dont need to make a depost of 10% of your income, but it will really help if you want something special that will cost a few extra bucks, or in case you have car problems or whatever. just make sure you do not skip out on the savings account. you can get some with high yielding interest too. thats a great idea. pennies add up over time, youll see. i have a second job, and i put my paycheck about $70-$100 in there a week, and if i need it, i take it out. and whats an extra 10-15 hours a week? if you’re young, you can work the extra hours. save it up to invest in your first home, or a really great car. the bigger the down pay, the better the finance rate, and lower monthly payment.
good luck all.
These tips will be very helpful for me when I make my budget plan. I am saving up to get a car, so budgeting is something that I will have to use to accomplish this, while still being able to maintain my apartment and bills. I also believe in the freedom of home ownership, so I definately want to achieve that as soon as I can.
implement this
Thanks a million I have tried this for one day and saved 17.00. I didn’t realize how much I spent on a 3.99 smoothie at work, lunch 7.25, newspaper .50, dinner to go on the way home 5.67. Whoa!!! Thanks for the wake up call. I could have my mortgage paid off earlier if I took that money and put it towards my monthly payments.
I only bring home $1200 a month how in the world do I budget with that and I have my own place and other bills and utilies.
It’s not very realistic to think that only 30% of your income should go to rent. I make about 2300 a month and 30% would only be $690 per month for rent. I live in New York City and you will not find any place for $690 unless you qualify for low income housing.
The “budget” articles provides great guidance. However, one key element is missing, viz. giving back to God a % that He graciously gives to us continuously. After all, whatever we have, is but a gracious loan from Him. Without Him, we would not exist nor would any of our blessings. So please remember to always provide a % back to God.
This is good information … even if you’re already IN the real world. It seems as though the negative comments might be because there wasn’t enough effort in following the budget…
I think this is good advice. I think as long as people are living within their means and not digging themselves further into debt, they should have no problem following this budget, but i do have to agree with hank, make sure to add in that 10% to give back to God.
I have been searching for the breakdown in percentages of everything. I am so happy & greatful that I found it. It’s a good “starter kit” to work with. I do think it is important to customize a budget to fit the lifestyles of individuals. Stay positive & pray.
Thank you. These are great tips to budget. Though I feel my pay raise dosen’t match with the rising cost of living….such as cost of gas, milk, and co-pay for Dr’s visit.
great article. am going to try this budgeting strategy today.
I am glad that I read this article now I can apply for the assistance that I know I am entitle to – I pay about 95% of my income in rent.
One of the biggest unexpected expenses I had was bank service fees and NSF fees (oops!). Once I was able to see exactly how much money I had, I managed to eliminate that unnecessary drain!
i jus started my job and im not sure how much i make a month yet but im trying to mive out on my own by the end of this month and i know ill be able to afford this. then what am i supposed to do?
Anyone else notice that these percentages add up to 114% of your money? Please, explain this to me….
Jason, I notices that also. Anyone know where to find a sample budget that actually adds up to 100%?
Maybe following this too closely is what leads to debt. After all, following it to the letter means spending $114+ for every $100 you earn.
JASON, the second page says…
If you add up all these percentages you’ll get 114%, so clearly the experts are assuming you have most of these expenses but not all. So you’ll have to juggle the numbers around to fit your needs. These percentages won’t include all of your spending either, like the wedding present you had to buy for your cousin or the emergency new tire you needed when you got your flat.
Thanks so much for this article on apartment budgeting.IT is really going to be a big help to me and my roommate starting less than two weeks away now when we move to Quail CReek. Marsha Melder
Thanks for tips. We are trying to get spending in hand. Will be moving soon if landlords answer my e-mail.
I have a similar problem. One thing that helps is to have a roomate. Also, if necessary eliminate cable, internet and stop shopping at Jewel or Dominicks or whatever the expensive store is in your area. Try a food for less, or a save a lot store instead. You will save tons of money on groceries. Also, if you can’t find a roomate consider a studio apartment. Don’t have a home phone and a cell phone. Just a cell. Try not to go over your minutes. Also, I find it very helpful to stay away from stores like walmart, walgreens, osco, cvs and target. You go in for one thing and come out with way more than you need.
That’s a nice thought however I am a catholic school teacher who is single and supporting myself. I barely have enough money to live let alone give it away. God loves us even if we can’t afford to tithe every week.
It sounds pretty good by far, but how can you start a budget when your money is already accounted for before you can even start a budget. In other words your check is already spent before you even get it because everybody knows bill come a month in advance how do you budget from that?
moving out by the end of the month may seem possible but if you haven’t been working a whole month yet unless your making VERY good money it’s not going to come that quickly. Now would be the time to start saving all you can and maybe buying things you will need in your own place. (dishes,small appliances,all the little stuff that adds up especially when you’ve got bills to pay)You also have to remember that the first month will be the most expensive because of the deposits.(first & last months rent,utilities,phone hookup, etc.)Then you still have to eat and have gas to get back and forth to work.SAVE
I have tried several styles of budgets & have found the a 60%/40% budget appears to work the best because it’s broader than breaking everything down into specific categories. Also if you’re starting out, puting 10% into a saving account can be too much, try starting off with something small like around 2%-3% – ING is great for this because you don’t have immediate access to the funds. I can’t stress this enough: PLEASE..PLEASE..PLEASE stay away from the cash/pay advance places, they’re a rip off. For soon to be college students, try to get grants before you apply for a student loans.
Jason, I thought that those percentages looked like more than 100%. You are absolutely
correct! Anyone else notice
that there is no category for
dental or medical emergencies?
How do we allot for that?
ALSO, my utilities are 24% of my TAKE HOME. These are paid FIRST, BEFORE FOOD or ANYTHING. This is with us turning off the stove before
“time” and other conservation methods. We cannot get them any lower.
I agree Cheryl. God loves us no matter what our income is.
sometimes I only have 1% to give him. I do not think I
spend unnecessarily. I feel
if he wanted me to give more
he would bless me with a JOB.
I thank him everyday for all
he has given me.
8% on student loans? More than half of my salary goes to student loans, and I went to school on a 1/2 scholarship. I also work as a full time teacher, and have to teach in the evenings to make ends meet.
I am having such trouble budgeing we have a daughter on the way very soon who was a suprise to me and my husband! and were having to live off 1 wage. We only earn $1700 a month and it is getting very hard! We are in Australia and prices are going up and up but wages and salaries are staying the same! its so stupid! buying the absolute basic groceries costs $300 a fortnight at the very least and rent is $560 a fortnight (i know pretty good)then there is $100 a fortnight for my husbands studies that hes doing through work then bills are about $400 a month. Then there is car maintenance and Vet bills etc.. HELP!
Uhm… did anyone add up all of those percentages? I try to keep my financial planning in a spreadsheet and when I totaled these percentages up, they added up to 114%!!! That’s just not possible so I’m thinking that either there was a mistake or these percentages are meant to be guidelines in the amount being spent, the with category not necessarily applicable. I don’t have student loans and I don’t often buy clothing, so knocking those out brings one under 100%.
Another thing of note is that financial advisors tell people to pay into savings first & have an emergency fund (3-6mo living expenses.)
This sounds great, however sometimes not the easiest live by. I’ve been out on ym own for 2 years and have a baby on the way with 2 incomes. 30% does not go straight to rent, it is a lot more depending on the area you live. If you only want to send 30% good luck or try and rent a house with multiple freinds. I didn’t have cable for the first 2-3 months i lived in my new place to save money and get caught up on bills after those large deposits, it may seem unbarable to not have cable however movies and dvd tv shows are wonders and you tend to save more money and get a lot more done during the week without cable. Good luck
Onething that helps me alot when doing Grocey and other shopping (especially places like wal-mart)is Plan your meals ahead of time. and write down your shopping list before you ever go into your store, then STICK TO YOUR LIST. Youll be supprised how much you can save if you dont spluge shop.
The percentages do add up to 114%. They make the asumption that not all of us are going to hve every expense. For isnstance if you dont have student loans your not going to use that catagory…if your insurance only adds to 5% of y our income adjust it, the end result should equal !00% for you. Tweek the #’s a little
You don’t budget on a $1200 a month income. You live paycheck to paycheck. This article is for people who make more than the typical American. I only bring home $1400 per month, live on my own and have two teenage girls. I live paycheck to paycheck. I used to have a savings account which I started with good intentions and $100. I still have the good intentions but the $100 was eaten up in fees. Bye-Bye!
On salaries such as ours, we know how much our bills are and we know that we will have no money left over after they are paid. Our budget is, Pay your bills first than buy a stick of bubble gum with the left over!
This budget adds up to 114-124% of your after tax income. Definantly follow a tighter one than this in today’s economy.
This is a very appreciated article. I have never thought that to lose extra spending I should keep a money journal!
Fun!
Thanks now I no longer feel frustrated because that will be me thanks! moving that is again thanks!
Good!!, I’m still working through that mess, and I’m pretty familiar as to where my money goes
Learning to say No is a big deal for a mom… 
For the love of god will people please read the entire article before commenting. Says on the second page, “clear as day” that if you add up all the percentages you will have 114% What you need to do is tweak the percentages for your particular situation. This is a very practical spending guide for someone who hasn’t immersed themselves too deeply into debt yet or who is willing to work a little harder to for some extra cash to get to where they want to be. I do agree that it is not a one size fits all glove. Finances and budgeting rarely are
I am planning a wedding and a honeymoon next year, and while trying to think of ways to cut corners on the wedding, I should also have been thinking of budgeting so I didn’t have to. Thanks, This will help a LOT!
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My son, boyfriend and myself all live separately,which we hate,do to the economy.I just got a job and my boyfriend is still hoping to get one. We are both over 50 so its a little tough. I’m definitely going to do the tips that I read once we both have income coming in. We are tired of living with our kids, though they have been a life savor. Thanks
The student loans prcentage is a joke… My loans are about 35% of my income and that is the lowest I can get them! Unless you have very little loan debt that is a number that is hard to have any control over.
Um, hello? Thanks for the tips, but this is over 100%…
Math anyone?
Rent, 30% of your income…
That’s great, if you can find housing cheap. I can’t find an apt where I live that is less than $700, and those are one bdrm apts.
What about health insurance? How does this not make it in the consideration?