This includes trips to the doctor, any out-of-pocket medicines you may need, or urgent care. While it’s not something you can plan for, it is something that you can budget for. Health (5-10%) – This is for health-related costs. This includes car insurance, gas, parking, and more. This can be a car, your bike, or public transport. Transportation (10%) – Transportation includes everything that you need to get from A to B.
This can go to other categories or towards your investments. If you can cut back your housing expenses from $1500 to $1000 for example, that’s an extra $6000 you’re saving. Housing is also one of the BIGGEST expenses you can cut back on. While this is a big chunk of your budget, it can be challenging to not go over 25%. Housing budget percentage (25%) – Total housing is your rent or your mortgage, plus any property taxes or insurance you may have.
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If you’re having a hard time, here’s how to cut your electricity bill in half.
Utilities (5-10%) – Utilities are bills for things including gas, water, and electricity.