Sample Monthly Budget

This is a response to Cherry123’s question about a financial plan. It is extremely expensive to live these day, so I have come up with my version of a monthly budget for a single person.  Our ability to save is based on the choices we make. If there is more than one person in your household, adjust the numbers accordingly. Feel free to let me know if I have left out any expenses. These numbers are not carved in stone as every situation is different.    

• Sample monthly budget for a Single Person (with no kids.)  

 

• Monthly Income
• Take Home pay (after taxes)                           $2,000
• Monthly Expenses & Savings
• Mortgage/Rent                                                  $700
• Food and Household items                               $225
• Utilities (Phone, Internet, Cable)                       $275
• Auto (Car Payment, Gas and Insurance)          $350
• Entertainment / Misc                                         $150
• Savings                                                            $300
• Total                                                               $2,000
•   Summary  

 

• Mortgage/ Rent:  Payment for housing generally should be right around 32-38% of take home pay.  If it exceeds these percentages, you have to be willing to cut back other expenses. For ex: Entertainment etc.
• Food:  I used $225 in this example assuming that you bring lunch to work a few days a week. By bringing lunch just 3 days a week, I save $96 per month. I figure a single person can make it work with $225 per month if you spend it wisely.
• Utilities:  This includes your cell phone, home phone, cable, internet, gas and electric. In this category, the cell phone bill will eat up most of the budget. Many people are now using smart phones. I personally don’t have one. I don’t need it. If you can afford to go without a smart phone, you can trim an average of $40- $50 off your cell phone bill.
• Auto (Car payment, Gas and Insurance) : It would be ideal if your car is paid off, then there would be no car payment. If you are leasing a car (I don’t really recommend it,) a reasonable lease payment amount in this case would be $125 per month or lesser. This will leave you enough for gas and insurance.
• Entertainment:  I didn’t designate a lot for this because I believe this is one area that we can all afford to save on.  There are lots of coupons for entertainment. I do love to shop, especially on DP, so that’s an area that’s a challenge for me. I cut back on my weekly entertainment expenses and accumulate it in a vacation fund.
• Savings:  I have designated 15% here for savings. I don’t know if it is too high or too low. Every month, I learn to cut back on expenses where I can to increase my savings.