For most budgeters, this category is by far the biggest. This includes everything from rent or mortgage payments to property taxes, HOA dues, and home maintenance costs. The amount you pay to have a roof over your head constitutes a housing cost. You can adjust up or down to fit your actual take-home pay. Here’s a list of essential home budget categories based on an average budget of $3,564 per month. If you live anywhere else, you’ll have a bit more to work with, but we’ll use that as our average. For people who live in California, your actual take-home pay is about $42,768 after taxes, or $3,564 per month. Assembling your home budget categoriesĪll monthly budgets start with your disposable income - the amount of money you take home from your paycheck after taxes, retirement savings, and other deductions.Īccording to the US Bureau of Labor, the current American salary in 2024 is $53,490 per year, but that’s before taxes. It also offers suggestions for how much of your income you can contribute to each category. This guide reviews a list of budget categories found in a basic household budget. Once you’ve identified your basic budget categories, you can start allocating your spending based on your own individual financial circumstances. The first step involves breaking down your regular expenses into budget categories to get a clear picture of your spending patterns (including areas where you tend to overspend). A solid budget can help you take control of your finances and use your money with real purpose, so you have enough to pay your bills, grow your savings, and still enjoy life today. A budget is really just a plan for your money.
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