Lets take a look at how I think the average Joe’s budget should look like.  Budgets are only useful if you have enough discipline to stick with them.  You will hear me repeat the following constantly throughout my blogging.  99% of success is taking action.  Hold yourself accountable for sticking to your plans.  The old saying goes, if you fail to plan, you plan to fail.

Every payday, every dollar I have coming, is budgeted before the cash even hits my account.  I have found it much easier to pay bills, etc. when all (well, lets be realistic, most) expense are budgeted for.  Here is a sample budget (Which is actually mine to the dollar) to get the juices flowing on what items should be planned for.  Almost all expense fall into this category.  Seriously, when is the last time you didn’t get an electric bill?  So why isn’t it in your budget?  Ask yourself the same question for all categories listed below.

All dollar amounts are per pay period (Every two weeks).

Mortgage – $500
Car Payment – $180
Insurance – $100
Savings – $253
Cell Phone – $53
Comcast Cable/Internet – $29
Electric/Gas – $100
Grocery – $100
Trash Service – $15
Car Maintenance – $25
Home Maintenance – $45
Vacation Fund – $25
Water/Sewer – $30
Clothing – $35
Gifts – $50
Long term entertainment purchases – $40
529 Plan – $13

Cash withdrawn every pay period for other expenses/fun $400.  This includes gas expenses for driving to work, etc.

Most of these are pretty self explanatory.  However, some are not.  I’m an eletronics junky.  I like computers and giant TVs so I have budgeted a small amount of my total pay to the “Long term entertainment” account.  The 529 plan is a educational savings plan for if and when I have kids and they opt to go to college.  Yes, you read that right, I save for college expenses for non-existent children.

You may be looking at these numbers thinking “This is impossible.  I don’t have that kind of money.”  I didn’t always have this money either.  The truth is, if you are living within your means, you should be able to budget for any of these things.  If you are stretched to the max between rent and groceries, you may need to consider getting a smaller place or looking for ways to increase cash flow.  We’ll get to that later.

Think your situation is impossible?  Shoot me an email with your example.  I will create a budget for you and post for all to see.