Dave Ramsey Recommended Household Budget Percentages

What are some practical budgeting guidelines to follow? Read on to find out what budget percentages popular financial guru Dave Ramsey recommends. Plus, get tips on creating a budget that's going to work for you.

Dave Ramsey’s Recommended Household Budget Percentages

Ramsey’s 11 budget categories, along with the percentages, are: 1. Giving — 10% 2. Saving — 15% 3. Food — 10% 4. Utilities — 5%

Dave Ramsey’s Recommended Household Budget Percentages

5. Housing costs — 25% 6. Transportation — 10% 7. Health — 5% 8. Insurance — 10% 9. Personal spending — 5% 10. Miscellaneous — 5%

Dave Ramsey’s Household Budget Percentages Analysis

The idea is to use these budgeting categories as a way to analyze your current monthly budget. 

As such, the first step to making these budgeting categories useful is to compare them with your actual current spending. The emphasis is on actual because research shows there is a vast difference between what we say and what we do.

How To Analyze Your Monthly Budget (And Create Your Own)

Once you have this data, you can then use it to make good financial decisions. Use these questions as a starting point.

1. Which areas of my current budget are within the recommended guidelines? 2. Which areas of my current budget are outside the guidelines? 3. In which categories are my current spending habits fixed?

4. In which categories is my spending flexible or variable? 5. Will any categories increase in the future, and why? 6. Will any categories decrease, and how? 7. Which categories do I want to increase?

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