We all have goals we’re working towards financially. Budgeting is very important because it allows you to cover your expenses, as well as plan for your those goals and the future.
When you have a budget, you’ll be prepared in the case of an emergency. Expensive unexpected events happen to everyone at one point or another, and it’s important to have a safety net if and when this does occur.
When budgeting for your salary, you want to make sure your necessities don’t exceed half of your monthly income. Necessary expenses include groceries, housing, and transportation.
Health care is a variable because you may get some of it paid for through your employer. Hopefully this is the case, because it’s expensive to have to cover it all yourself.
Again, this is a big variable. It of course depends on how many kids you have, their ages, what schooling options are available and if both parents work.
When budgeting for discretionary spending, the percentage will depend greatly on how much you make. Being these items are optional, they get reduced if your income is not high.