Budget ratios

[John]

I was just reading a financial adviser's ideal ratios for spending the family budget. He listed: 50-60 percent living expenses, 15-25 percent taxes, 5-7 percent insurance and 10-20 percent savings. We are lucky to devote 10 percent to savings. Now that they kids are older, it's even more difficult. Is anyone able to hit more than 20 percent savings?

 

[Timothy]

We're not able to hit 10% savings at the moment. After taxes and insurance premiums come out, all the bills are paid, and food is on the table, we're usually broke!

 

[jason]

Is anyone able to hit more than 20 percent savings?

Not since I got married. Before marriage I was doing a lot better, but then again at one point I had three jobs so it was easier to save. Hopefully one day we can get the savings back up there.

 

[Victor]

We aren't anywhere close to that. We have an emergency fund of about $1500 but that's it for savings. All our money is going towards paying debt as quickly as possible.

 

[BigPapa]

I don't think that most families have the income to put 20% towards savings. It is sad. We live well within our means but we still can't get 20%.

 

[John]

I agree that it's really hard to get the savings taken care of. Now that we're older, we are trying our best, but there's always something the children need, or something that breaks.

 

[Zimmer]

It depends on the month. Sometimes we can, most times we can't. I think once both the kids will be off to college, we'll manage a little better.