The 70/20/10 budget rule works by allotting 70% of your income for monthly bills and everyday spending such as cell phones, groceries or utilities, then 20% goes to saving and investing and 10% goes to debt repayment.-Transportation or auto services: 10-15% Credit card and bank statements are a good place to start since they often itemize or categorize your monthly expenditures.-Insurance, such as life, medical, home or auto: 10-25%.Though breaking down your budget in percentages is based on your unique financial situation, here is a good general breakdown:.What percentages should you use for your budget?.The remaining 30% of your income is for discretionary spending. The Grattan Institute 2023 Budget cheat sheet shows what Australians earn each year and how much they own. That leaves 50% for needs, including essentials like mortgage or rent and food. The popular 50/30/20 rule of budgeting advises people to save 20% of their income every month.Housing represents 25 percent of your budget so you can afford rent or mortgage payments of 1,375 dollars a month. This means that the average household has 5,500 dollars for a monthly budget. Our 50/30/20 calculator divides your take-home income into suggested spending in three categories: 50 of net pay for needs, 30 for wants and 20 for savings and debt. Here are the answers to some of the most frequently asked questions regarding budget percentages. According to the census bureau, the average household income in California is 66,000 dollars per year.

Household budget by percentage