December 19, 2008

How to set up a budget

When a person first sets up home it seems like a great thing, you can do what you like, go out, stay in and most of all spend your money on whatever you want, but in reality, setting up home is not all fun and games.

If you intend to stay in your own place, then there is a need to prepare yourself for all of the expenses that will occur and the best way to do is by setting budgets. This may not be as difficult as it first seems if you follow the pattern below:

Household 35%
Mortgage or rent, House insurance and Utilities
Transportation 15%
Vehicle payments, Vehicle insurance, Gas and Bus or cab fares
Debt 15%
Credit Cards, Loans, Lines of Credits and department store credits
Savings 10%
Living Expenses 25%
Clothing, personal effects, groceries for the month, eating out and entertainment

Source [Hub Pages]