These guidelines are only recommended ranges. You may also notice that if you spend the maximum amount in every category, you’ll exceed 100% of your income. It’s important to know there is nothing wrong with exceeding this limit as long as your budget balances (your expenses don’t exceed your income). However, if you happen to have young children in daycare, have high education costs, take nice vacations, tithe, or have hobbies or recreational interests that aren’t cheap, you’ll quickly exceed the suggested maximum for this category. The guidelines suggest you spend 5 – 10% of your income in this category. ![]() The category in these guidelines that people will most commonly exceed is the “Personal & Discretionary” expense category. Don’t rely on credit for these unexpected expenses. You’re allocating some money towards savings (savings are absolutely necessary for life’s many unexpected expenses.You’re not spending more than you earn, and.If finances aren’t strained in your household, you can choose to be more relaxed and go beyond the guidelines in areas as long as you’re careful to do two things: These guidelines have been created for someone who really needs to put together a tight budget. Planning for these unexpected expenses now will help you budget successfully and achieve your financial goals faster.How to View These Budgeting Guidelines to Get a Hold of Your Spending Habits ( Here’s how I organize these non-monthly budget expenses.) Instead, set aside a small amount in your monthly budget for each of these expenses, and you’ll have no added stress when any of them pop up. If you do you’ll soon find yourself without an emergency fund. You don’t want to rely on your emergency fund as a catch-all for these unexpected expenses because most aren’t emergencies. Then each month from then on, we saved a bit toward our gifts budget, so we’d always be ready. That kid birthday party we were invited to? Well, we ended up gifting something that we already had at home to stop us from going over budget. Taxes on extra income from work from home income or interest earned.Tax Preparation (software or accountant).Gifts for when your kids attend their friends’ birthdays.Sports and extracurricular equipment and dues.Travel, not just for vacation but also for holidays, weddings, births, and funerals.Seasonal yard maintenance or snow removal.Attending potlucks or get-togethers where you need to bring food. ![]() weddings, birthdays, baby showers and Christmas
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