When it comes to budgeting, taking the first step is
often the hardest. So get started! You can create your
own spending plan or use this budget toolkit.
As you develop your spending plan, or budget, here are
some guidelines to consider for various expenses:
Housing (rent or mortgage) 20 to 35%.
Utilities (gas, electric, water, trash, telephone) 4 to 7%.
Food (at home and away) 15 to 30%.
Family necessities (laundry, toiletries, hair care) 2 to 4%.
Medical (insurance, prescriptions, bills) 2 to 8%.
Clothing 3 to 10%.
Transportation (car payment, gas, insurance, repairs, or
bus fare) 6 to 30%.
Entertainment 2 to 6%.
Savings 10 to 15%.
A spending plan is an evolving tool. It’s important
to regularly review your spending plan because your
priorities and goals may change and you will want to
update your spending plan accordingly.
In order to gain control of your finances try to
remember EARN:
Embrace reminders. Use reminders to keep you
motivated. For example, consider setting a reminder the
day before your payday to remind you to review your
spending plan.
Automate your savings. Consider setting up automatic
transfers to make consistent deposits. If you set up
automatic transfers, you can “set it and forget it”.
Removing barriers and using automatic efforts has been
shown to help increase your savings.
Reduce your exposure. Leave extra money and credit
cards at home to limit spending. If you, your friends and
family like to shop, explore other activities with them
that don’t involve spending money.
Network. Do you have friends or family that also have
savings goals? Challenge one another and check in on
your goals. This may help you stay on track and meet
your goals faster.
Use these tips to become a better saver.
Do you want it or need it?
Are you buying products or services you don’t
really need? You can save money by cutting back on
impulse buys or buying the latest fads and fashions.
Also, give some thought to items on which you could
spend less.
Make savings an automatic habit
Put a portion of every paycheck you or your spouse
receives into your savings account by using direct deposit
or automatic transfer. You’ll be much less likely to spend
the money that way.
Pay yourself first!
Set aside money for savings at the beginning of each
month, rather than waiting to see what’s left at the end.
Decide on a percentage of your monthly income (for
example, 5-10%) to direct deposit or transfer into your
savings account.
Set aside “extra” money into savings
If you receive a tax refund, deposit it directly into your
savings account. If you or your spouse gets an increase in
pay, put the extra amount into your savings. If you receive
cash as a gift, save at least part of it. If you have paid off a
loan, keep making the monthly payments — to yourself,
in your own savings account!
Pay your bills on time
When you pay your bills on time, you avoid late
fees; extra finance charges; disconnection of (and
re-connection fees for) phone, electricity, or other
services; the cost of eviction; repossession of cars or
other items; bill collectors.
Budgeting tips to consider
We’re here to help.
Printed materials expire 12/31/21
