The percentages in this chart illustrate the amount of your income that financial experts say consumers should spend on each type of expense. If you are spending a larger percentage of your income on any of the expense categories provided, then those are the expense categories you should target first for budget cuts.
Keep in mind that the percentages are spending guidelines, and not rigid numbers! You personally may need to allocate more or less of your income to certain expenses for specific reasons.
For example, if the cost of housing is particularly high in your area, then spending 30 percent of your income on your mortgage or rent payments for Housing may be unrealistic. At the same time, however, your area may have a less expensive public transportation system or lower gas prices, so spending 15 percent of your income on Transportation may be too much.
Adjust the numbers as needed for your region and your specific needs, but keep in mind that your goal should be to create a balanced budget. When everything in your budget is in balance, it will be easier to avoid financial hardship!