This guideline is a starting place for you to consider your budgeting needs.
Type of Expense
Percentage to Budget
Rent, mortgage payments, condo fees, lot rent, insurance, taxes, utilities, maintenance, and repairs
Car payments, gas, insurance, maintenance and repairs, taxi/bus fare
Supplemental insurance premiums, medication, deductibles, and co-pays
Clothing, toiletries, other necessary items
Credit card payments, personal loan payments
Balancing the Budget
Every individual is different. Use this as a starting point for your budget. Costs will vary from household to household and from budget category to budget category.
Senior households usually spend very little on child care, educational expenses and saving for the future.
Medical expenses are generally a significant part of a senior household budget.
If the combination of your housing, transportation, and food expenses are more than 70% of your budget then you are unlikely to have enough income for the rest of life's necessities. Therefore it is important to cut those costs.
If more than 20% of your household budget goes to debt payments then you are likely to be in trouble financially. You should reduce your use of credit cards and other loan instruments.