I don't think people should be giving away 10% of their income to charity if they are in debt and cutting food and clothing budget to make extra debt payments, especially if you have kids. The sooner you're out of debt the sooner you can be charitable, imo.
@@PortlandMan You obviously don't know what the baby steps are. And how firmly he believes you should complete 1, then 2, then 3. In the exact order fiercely with everything you got, BEFORE doing the other 4 baby steps where donating is in step 7. Next.
iGimmie Dave says tithe first even in baby step 1. But it has to feel good to give. If you just do it because it's in the Bible or feel guilt about then don't do it. Give first because you want to and feel good about it
@igimie you obviously have never heard Dave talk. He is constantly saying to tithe first out of your budget especially while in debt. The reason is because Dave has faith in God. The Bible says to give 10% to God and he will return in 3 fold
My house will be paid off next October, and I live by the budget. (I tell everyone about Everydollar.). I thank the Lord that your Dad introduced me to the 15 year mortgage many years ago. The idea changed my life, and it really took only 9 years! Thanks for all you do!
+skynet000001 or make them even. we feed 3 for under $200 a month. I think we should increase our food spending some. i think we could do $75 a week on food instead of $40-$50
+skynet000001 ... I would do that too. $290 for a family of four or five is do-able if you plan carefully and cut out junk food. And $145/month to charity is a great contribution to a local food bank or shelter.
+skynet000001 u see, in US its a good idea to give money to charities, cuase at the end of the year u can claim all of the charity money back. it is kinda a good way of saving money....
In Australia we also get our taxable income reduced when we give to charity so I suppose it does work in saving but overall if you put that extra $290 into your own savings you would end up much better off
I LOVE that you have giving in this budget! We give 10% of all we make to tithing and often think, "how many other families in America are doing this?" It can be a great sacrifice and we often think of all the other things that 10% could be spent on, but we call it our "insurance" because when that's paid everything just works out, sometimes miraculously.
I think you're utterly fabulous! I've avoided dealing with money all of my life. I'm now 50. I have a good job. No savings. Dealing with money intimidates me. I'm not great with numbers, and that's what money is. I've always tended to stop listening when someone talks about money, but I'm determined to change my financial health. I understand what you're talking about, and I don't feel like an idiot failure. Thank you so much. Blessings to you and yours. Xxx
I'm left handed too! (: and I'm working on debt right now.. Lucky me God is teaching me a lesson before I have a family to provide for! And watching you and your fathers videos are helping and I already was doing the first couple of steps before someone told me about you guys! So it feels good I'm on the right track! I'll be watching a lot of your family's videos! Thanks for the help!
+Prakriti2041 single guy spend about 60 bucks a month on food I precook in bulk and have everything ready to eat in containers when i get hungry so 145 might not be to of the mark if you pre planned
What?! My husband and I spend nearly $600 a month on food, and it’s JUST the 2 of us. Mind you... we live in a small northern Canadian town where food is more expensive. But STILL. We would never survive on less than $400.
I've shared this with my 19 year old daughter as she prepares for college this year. Thank you. Could you give advise or make a video for college students? Also what reading do you recommend for young adults preparing for college. We've read financial peace and Smart Money Smart Kids. Thank you.
Great video....the comment section is ridiculous. It doesn't take a room full of accountants to figure this out. Budget based on your monthly income. Some areas you will apply a greater percentage than others. The whole concept of the video is to budget every penny. Whether you apply greater percentage to grocery than savings etc. That is up to you and your family needs. This is just a template
I live in NY so $750 for housing is extremely unrealistic and I spend $280 a month on groceries for myself. The charity budget would become my food budget and the food budget would go toward rent. I donate my time not my money.
So many people in the comments section have ridiculously high food budgets. Cut back on convenience based items, snack items, treats, fancy brands, and most of all...portions! Stop eating so much, America! We feed a family of 5 on $200 a month, and have been for over a year. We eat dishes with potatoes, rice, chicken, pork, strawberries, apples, cheese, broccoli...all of the foods needed for a balanced diet. My kids are active and energetic, they are good in school, and they are healthy. Spending $400 a month on 3 people happens because you have the wrong mindset.
I think you should do a video to show how to do this because I can't wrap my brain around her low food amount or yours. Maybe you can help a lot of people.
Nancy White I have no interest in making a video to teach people how to do something that they can figure out themselves. All you need to do is take a look at where the money in your food budget specifically goes and adjust accordingly.
Except when there are certain foods that can ONLY be consumed due to medical issues. For instance my wife can drink water or goats milk. And goats milk cost $4.29 per quart.... PER QUART. So a gallon a week $18.20(after tax) times 4 weeks = almost $73 in her milk alone. This is just one item. She has about 8-10 items in all that she can eat because of a chemical food allergy. So ya our food budget is HIGH every month. But we don't eat out. For our family of 3 we spend around 450-500 a month.
Nathan Key Yes, there are certain exceptions. Sometimes, such as in your wife's case, one is simply limited to fewer options. My wife is sensitive to dairy products, so we also by Almond Milk. It is more expensive than cow's milk, but far cheaper than goats milk. My comment was more directed at those who are not restricted by medical conditions.
Absolutely. Please don't take my comments to be directed at you directly. It is definitely to each person's individual needs to the amount the set their budget to. I just find this video's %'s to be unrealistic. Have a good one.
I always like to know more about budgeting! I'm one who has always paid tithing and 5 years ago became debt free thanks to the Dave Ramsey program. Thanks rachel!
When do you start your budget? On the first of the month? Or the beginning week of whatever week the 1st falls? With paychecks not matching up to actual months, I wasn't sure if this would throw it off at all.
Thanks for the break down :) my husband and I are starting your father's budget and it's nice to see an example in writing. Everyone's budget and needs and beliefs are different, so I hope everyone takes that into consideration when they watch your video. Thanks again
I do understand what people are saying about this video, especially with the charity, but that's based off one income (which may be difficult). However, my husband and I each bring home that amount so basically the categories are doubled. We are only two people though. I would rearrange the charity contribution and cut back in areas that aren't necessary like recreation and clothing to feed a larger family. Later, when you do need that money for rec or clothing, you can take a small percentage from savings. At least until you are out of debt and then you can start adding back to the unnecessary categories.
I have had to understand that the budget numbers will actually be different for each person. My utilities cost is way above 5%. It’s more like 11%. This summer the electricity bill has been averaging $350. We live in Texas and you can’t live without AC here. Our home is a year old and we set our thermostat between 74 and 78 depending on the time of day. Make your budget work for you and your situation. If you can’t give 10% financially right away or choose to never do so, don’t feel guilty. If you can give from the beginning and feel that’s right for you, then do so. Everyone has there own reasons and have to do what’s best for you.
this is a great set up for a monthly budget. Different areas need to adjust for cost of living obviously and everyone is different. thanks for the great example.
It's really important to emphasize that if you don't use all of the money budgeted for a category that it's ok to change the budget and get that money moved to a place where it's needed more. I know a family that would have money left at the end of the month and felt they had to go out shopping to spend it before the new month began. They had just budgeted a little too much and should have moved the surplus to paying off debt or their savings rather than planning a trip out to Walmart and lunch at a restaurant to get the money gone. I couldn't seem to get through to them that a zero based budget did not mean that their bank account had to be empty when the new month began.
Our budjet focus more on our needs first, and also savings, so is 25 housing, 10 personal, 10 utilities, 10, food, 10 transportation, 5 charity, the rest is savings and debt pay! You first. Because your family needs security. This a nice example but it is a bit much when you cut the needs to feed others!
There is 18% missing, I watch both your channel and Dave Ramsey's so is the 18% missing the 15% recommended for retirement and the other 3% is for adjusting other categories?
What if you're an absolute baller and like to buy a new gold chain or diamond plated grill every couple weeks or so? Do I just slip that into my clothing category, or should I set up a completely new category for this?
I searched for "beginner life budget" and your video was the second one I found. Thought it looked great and sounded doable. THEN the video ended, and I saw you wrote a book...with your dad...DAVE RAMSEY. No wonder this looks so plausible! Thanks for the help :)
hi racheal, my husband and I just starting doing a budget. my question is how do you budget things like for health problems. I have an eye disease and wear contacts my solution is going to cost me over a $100.00 a month.
im in such debt right now ever since lost my job. my hubby is the one holding upbrhe homw now.recently got raise but still barely have enuff left for gas expenses. I just jope things get better financially...and i. hope get job soon.
Yes some rents are different and some eat more than others but the purpose is to learn how to have money left over at the end of the month. I notice most are denying that this works. Again it is stated that she has no debt. She mentions the debt snowball. I would suggest you look up the debt snowball. Most probably will not, but the few that will and follow these guide lines "will" become debt free and never use a credit card again without being able to fully pay it off at the end of the month. Best to your success!
If you put money for savings first, if you get to the end of the month and need £50 of £150 you can still save £100. The thing is to try not to use it, but if you need to ,you can fall back on it rather than ask people
Do you have a video blog that shows how to budget on the EveryDollar app? Specifically, one that shows how to add DEBT to that app without the program telling me I am thousands and thousands of dollars in the hole every month? Or is it possible on that app? Thanks!
I make less than this example and I have been tithing 10% for over 2 years now, starting with fear of not having enough but trusting joyfully that GOD WILL keep His promise. There has NOT been a day I have lacked a thing. He gives me wisdom to manage my money the right way. "Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it." Malachi 3:10
Hi Rachel, I was wondering if you could please clarify something for me. So for a monthly budget my BF thinks that we should enter our income as it comes in but I thought that we were supposed to put the average for the whole month. Please let me know, I am really excited to start budgeting and most of all our total money makeover! Thank you! I love your videos
+DITZY034BALLA Exact numbers increases accuracy. The point is to account for every dollar coming in and out during a specific time period so that you don't overspend, overdraw or over save (which is a real thing).
The thing that has really been a struggle for us in getting started with this is medical. Our medical plan has a 5K deductible and both my kids need therapies, some of which are not covered by insurance at all. So even though our income is double plus the average. We cannot seem to balance income with expenses. Until we can do that we can't get to the debt. What is your advice when it comes to affording necessary medical expenses??
+melissa horbal Specialty savings accounts work well. Many people label this one account as savings but depending on the goal and its use savings can mean different types. Emergency (3-6 month living expenses), Holidays, debt payments, car repairs and in your case medical which is usually a near or in retirement concern. So have multiple saving spots so that you don't stop saving thinking you have enough in just one account.
Great idea ! It is one of the simple explanation about how to budget your financial every month properly. Nice and goods. Keep it up ! and you can determine it.
So what about single, recent college grads who aren't apart of a family unit? Saving and charity percentages would be near impossible if you take into account student loans & working a minimum wage job with no healthcare. Can you do an example for those?
+Jaron Pope Thanks for watching! Take care of your four walls first and then pay what you can. Here is a video to help: ruclips.net/video/3_RX4gT20EM/видео.html
+Rachel Cruze I wanted to thank you for the 4 walls link. For people be hind on bills when they don't have enough money to pay everything in this budget it can be overwhelming especially if their bills are more than the 145 for utilities or if their family needs to spend a bit more on food for dietary reasons. Thanks!
I want to start the monthly budget, but I'm not 100% sure of how much our income will be for the month. Our income varies based on if we work overtime or not. Should I start out our budget with a regular 40 hour week, and go from there? I would love any advice on how others determine their budget. Thanks
I make a super overly complex budget. But I love it. I use 3 tabs.. I also have a expected column and an actual. So if last month we earned 3555 (just a random #) I use that as a guess. Then I can keep the bills and receipts. If the first check of the month is different I can make adjustments. If is was less we can easily cut from our spending money.
My transportation budget includes, gas, insurance, & maintenance fund. Maintenance fund usually goes into a jar on a shelf & is used for oil changes mostly. I still never have enough you spare any to build up a emergency maintenance fund for like a blown out tire anything. $8/month for maintenance jar, then about every 4-5 months I get an oil change. Occasionally have to squeeze a few extra bucks out of something else to afford new wipers.
Dani G Guys If you really serious about making money online without selling anything and on hourly basis.... You should try InternetJobsAtHome5.blogspot.com I personally make money with this website ===>>>>>
I watched this vid on my PS3. I was so outraged at her ridiculous estimates that I had to pull out my laptop just so I could comment! It looks like MANY folks have beat me to most of these comments, so thank you to them. But, I have to say 145 bucks a month on food is DREAMING !!!!! My wife and I have NO kids to support. We make about 4,000 per months after taxes and spend almost 650 dollars on food (and household stuff, like paper towels, soap, toothpaste, etc.) a month - and we DO NOT dine out that much! By the way, for the family who makes 2900 a month, the FOOD doesn't magically cost less than for them, so they probably spend close to 650 as well, a HUGE hit to their income. Second, I didn't see her include insurance at all. If you dont' get insurance from your employer (thanks, Obamacare), the CHEAPEST health insurance we can get is about 400 bucks a month premium , and that's WITH the subsidy of $171. When you combine renters, auto, life, dental, disability, health insurances, it costs us about 700 bucks MORE in just premiums every month! Her numbers are absurdly off. I dont' know HOW a family of 4 survives on 50 grand a year. We are just the 2 of us, making a little under 60G per year and we have ZERO left over for savings or charity. WE do NOT live glamorously. Not even close. We do happen to be in the Chicago suburbs , which is probably a bit pricier than most parts of the country, but can anyone watching who is part of a fam of 4 and only makes 50G per yr explain HOW you make that work without accruing debt??!!
+jawojnicki She is clueless. Just the child of someone who has financial security and is self-privileged/qualified. Love the donate 10% off the top. These are people who have trouble meeting monthly needs as it stands. Complete fail.
I noticed that your amounts are based on your *net* income. We've alway tithed on our gross income. Wondering if there is a principle that would guide us to tithe based on net vs gross? We have some debt and are working on paying it off, so it will make a difference. After we're debt free I won't care about net vs gross, but while we're doing the debt snowball it is significant. Thanks! Love the channel!
Which of these categories would health insurance, car insurance, phone, and internet bills fall on this example? Or would they need to be additional categories?
My parents always told us to give 10% of our income too. I have 3 siblings, and we always have except for when we were in university. Every year my siblings get audited, because the government doesn't believe they gave that much.
She took 10% as a tithe because she’s a Christian. So yes for many people, actually millions of them in America, this is real world budgeting. And if you know about Dave Ramsey then you understand that there’s a certain discipline and desire to live like this so you can live like no one else.
Hi, Rachel. How would you recommend budgeting someone like me whose income (disability) is a tiny fraction of your example? In my case it's well below 1k/month, and I have around 4k in debts, mostly credit cards. (Should I put the almost-2k in a mutual fund toward the credit card, for example?) I'm currently with my parents near San Diego, CA, but at 33 I really need to get out on my own. (I hope your dad doesn't blow a gasket if he sees this comment.) Housing is high here, though, so I really need to find some work. I'm super afraid of failure and discouraged from failures in past years, though. Should I take out a mortgate on a copy of, say, Start, or 45 days to the work you love, or some other book that might give me some guidance to help me get past that? As for the type of work I'd be looking at, when I was in college (which I never finished, cause I was diagnosed with Aspergers when I was about 20 and dropped out of college around that time) I was looking for something computer related. I still love computers, but I think based on talents I know I have (playing piano for example) I'd be better in an artistic field. (I originally had a much longer post typed up, but it included details that, while maybe helpful to know how to point me in the right direction, would be better not posted online in public.)
Nobody on a budget of 2900 can afford to give away double the amount to charity/tithing than food. Food is a basic need and have you been inside any grocery store lately? $145 may work if you live on Ramen and lettuce.
Hi Rachel, I really love listening to your dad's radio show and watching your videos. I live in Australia and everydollar is not available in the Australian App Store. Apple won't allow me to buy the app from the US store. Please make it available in Australia! :)
I will first like to Thank You for taking the time to do this video. I'm sure it will be very helpful to many specially those who've never been exposed to budgeting before. However your numbers, several of them, are highly unrealistic!!!!! Housing...$750? Where is that...Kansas? Family of 3-4 spend $145 a week in groceries not a month and that's being conservative. Utilities $140/month?? In Winter months that's electricity alone, we haven't even scratched the surface with water, sewer and trash. I think taking in consideration the real lesson and intention behind the video, folks should budget according to their realistic expenses, leaving out the unnecessary and remembering to always save a little!
And this is why we’re all in debt! Because food alone is over $500 a month And that’s for people who eat out of a box from Walmart we probably spent $1200 a month on food because we eat healthy What apartment is 700 bucks for a family of four yeah right And I could go on and on with this list. Smh 🤦🏼♀️
Hi Rachel! I love this model. I get paid twice a month so my expenses from my first paycheck typically go to covering my housing and utilities without much leftover. Do you have any tips for a 2 week budget system or how to make this work for those of us that are paid twice monthly? Thanks!
My husband gets paid twice a month as well and what we do is take 1/2 his check from the end of the month to go toward the next months bills and that eases the burden of so many bills coming out or one check. I hope this helps
if I do go out to eat, I eat at cheap fast food restaurants where no one has to tip, i.e. McDonald's, Burger King, Wendy's, Taco Bell. They don't go for that. Not at these small business mom and pop restaurants where obviously they charge a bit more for food.
this is... just wrong I think. 1. savings is not an "expense" 2. you should prioritize debt expense before you look at other expense. this is a mandatory and not discretionary expense. should prioritize THIS number above other numbers 3. why should you give 290 to charity and only 100 plus for food for yourself for a month ? how is that realistic 4. as opposed to saying this much percent for this this much percent for that it should be more realistic advice or mathematical methodology . for instance...when it comes to transport...the advice should be... assume you spend $xx per day both ways to and from work...multiply by 30 days. why is it a percentage ? it CAN BE calculated! anyway that is my opinion... that this could have been a much better video.
munna k Maybe you should. However, I agree with Rachel that savings should be an expense. It is an expense for the unknown future, it is an expense for financial security. Every dollar should have a home, it is a great way to avoid unnecessary spending.
1) She just means 'expense' as in something you set aside money for. It was clear she was not being literal as we all know savings isn't an expense but you should have a rule of thumb to set aside a certain percentage of your income for savings (15% by most advisors, with most being set aside for retirement) 2) If you know Dave Ramsey, his method is that you eventually don't have debt. But even if you do, she mentions it at the end of the video that you need to subtract other stuff to fit those payments in there. So that is her implying it is not a discretionary item. Also, you shouldn't focus on paying debt above having food or shelter. 3) The 10% is a Christian principal of tithing and giving first fruits to God. The idea that all money is a gift from God and we are to be stewards of what we receive and part of that responsibility is helping others above yourself. 4) And I disagree. The percentages I found very helpful. The calculations you mention would be very specific to an individuals situation, but knowing a rule of thumb of what one should be spending per month can help see where your expenses might be more or less than the norm. Clearly some expenses will be more variable than others based off the number of people in the household, distance from work, size of house, etc. Percentages is more of a baseline.
you can give 10% to charity, but the charity will only give 10% of your donation to those in need while 90% of it is used for marketing and salaries of those running it lol. do yourself a favor and keep it as part of your rainy day fund.
Try giving tangible items instead of cash? We have a homeless shelter close by that needs food, clothing, toiletries, etc. If I give them a 5 pound bag of oatmeal, they will give 5 pounds of oatmeal to those in need.
Who can go an entire month on $145 in groceries please explain that to me. Not even an extreme couponer these unrealistic expectations for ppl drive me nuts!
lol most everyone is wondering about the $750 for housing. My question is what do you eat for $145 a month? lettuce and water?
I don't think people should be giving away 10% of their income to charity if they are in debt and cutting food and clothing budget to make extra debt payments, especially if you have kids. The sooner you're out of debt the sooner you can be charitable, imo.
Sounding like Dave Ramsey😎
@@iGimmie Actually no, Dave Ramsey is pro giving. That's where Rachel gets it from.
@@PortlandMan You obviously don't know what the baby steps are. And how firmly he believes you should complete 1, then 2, then 3. In the exact order fiercely with everything you got, BEFORE doing the other 4 baby steps where donating is in step 7. Next.
iGimmie Dave says tithe first even in baby step 1. But it has to feel good to give. If you just do it because it's in the Bible or feel guilt about then don't do it. Give first because you want to and feel good about it
@igimie you obviously have never heard Dave talk. He is constantly saying to tithe first out of your budget especially while in debt. The reason is because Dave has faith in God. The Bible says to give 10% to God and he will return in 3 fold
My house will be paid off next October, and I live by the budget. (I tell everyone about Everydollar.). I thank the Lord that your Dad introduced me to the 15 year mortgage many years ago. The idea changed my life, and it really took only 9 years! Thanks for all you do!
+Naomi King Thank you for watching!
How do you did it pay extra money to the principal
$290 for charity and $145 for food? Shouldn't you feed yourself first? Id switch the two around....
+skynet000001 or make them even. we feed 3 for under $200 a month. I think we should increase our food spending some. i think we could do $75 a week on food instead of $40-$50
+skynet000001 ... I would do that too. $290 for a family of four or five is do-able if you plan carefully and cut out junk food. And $145/month to charity is a great contribution to a local food bank or shelter.
+skynet000001 u see, in US its a good idea to give money to charities, cuase at the end of the year u can claim all of the charity money back. it is kinda a good way of saving money....
In Australia we also get our taxable income reduced when we give to charity so I suppose it does work in saving but overall if you put that extra $290 into your own savings you would end up much better off
We feed a family of 5 on a $200 a month budget. Get rid of the convenience based items and your food expenditure will drop fast!
I LOVE that you have giving in this budget! We give 10% of all we make to tithing and often think, "how many other families in America are doing this?" It can be a great sacrifice and we often think of all the other things that 10% could be spent on, but we call it our "insurance" because when that's paid everything just works out, sometimes miraculously.
I think you're utterly fabulous! I've avoided dealing with money all of my life. I'm now 50. I have a good job. No savings. Dealing with money intimidates me. I'm not great with numbers, and that's what money is. I've always tended to stop listening when someone talks about money, but I'm determined to change my financial health. I understand what you're talking about, and I don't feel like an idiot failure. Thank you so much. Blessings to you and yours. Xxx
I'm left handed too! (: and I'm working on debt right now.. Lucky me God is teaching me a lesson before I have a family to provide for! And watching you and your fathers videos are helping and I already was doing the first couple of steps before someone told me about you guys! So it feels good I'm on the right track! I'll be watching a lot of your family's videos! Thanks for the help!
Thanks for watching! Glad to hear these videos are helping you get on the right track!
+Rachel Cruze also my handwriting is awful and I blame it on being left handed too lol
+Rachel Cruze how do you live off of $145 on food a month??? Also, you forgot about health insurance, car payments, etc.
Love love this !!! But being honest, no family can only spend 145.00 on food!!
I used to spend $40 a month on food.. ate a lot of bean and tuna or eggs
+Prakriti2041 single guy spend about 60 bucks a month on food I precook in bulk and have everything ready to eat in containers when i get hungry so 145 might not be to of the mark if you pre planned
What?! My husband and I spend nearly $600 a month on food, and it’s JUST the 2 of us. Mind you... we live in a small northern Canadian town where food is more expensive. But STILL. We would never survive on less than $400.
We do.
Speacially if you live in Canada
I've shared this with my 19 year old daughter as she prepares for college this year. Thank you. Could you give advise or make a video for college students? Also what reading do you recommend for young adults preparing for college. We've read financial peace and Smart Money Smart Kids. Thank you.
Great video....the comment section is ridiculous. It doesn't take a room full of accountants to figure this out. Budget based on your monthly income. Some areas you will apply a greater percentage than others. The whole concept of the video is to budget every penny. Whether you apply greater percentage to grocery than savings etc. That is up to you and your family needs. This is just a template
I live in NY so $750 for housing is extremely unrealistic and I spend $280 a month on groceries for myself. The charity budget would become my food budget and the food budget would go toward rent. I donate my time not my money.
Dc area . Couldn’t agree more.
So many people in the comments section have ridiculously high food budgets. Cut back on convenience based items, snack items, treats, fancy brands, and most of all...portions! Stop eating so much, America! We feed a family of 5 on $200 a month, and have been for over a year. We eat dishes with potatoes, rice, chicken, pork, strawberries, apples, cheese, broccoli...all of the foods needed for a balanced diet. My kids are active and energetic, they are good in school, and they are healthy. Spending $400 a month on 3 people happens because you have the wrong mindset.
I think you should do a video to show how to do this because I can't wrap my brain around her low food amount or yours. Maybe you can help a lot of people.
Nancy White I have no interest in making a video to teach people how to do something that they can figure out themselves. All you need to do is take a look at where the money in your food budget specifically goes and adjust accordingly.
Except when there are certain foods that can ONLY be consumed due to medical issues. For instance my wife can drink water or goats milk. And goats milk cost $4.29 per quart.... PER QUART. So a gallon a week $18.20(after tax) times 4 weeks = almost $73 in her milk alone. This is just one item. She has about 8-10 items in all that she can eat because of a chemical food allergy. So ya our food budget is HIGH every month. But we don't eat out. For our family of 3 we spend around 450-500 a month.
Nathan Key Yes, there are certain exceptions. Sometimes, such as in your wife's case, one is simply limited to fewer options. My wife is sensitive to dairy products, so we also by Almond Milk. It is more expensive than cow's milk, but far cheaper than goats milk.
My comment was more directed at those who are not restricted by medical conditions.
Absolutely. Please don't take my comments to be directed at you directly. It is definitely to each person's individual needs to the amount the set their budget to. I just find this video's %'s to be unrealistic. Have a good one.
Thank you Rachel for sharing a monthly budget, today I was looking for a guide on how to control my budget.
I always like to know more about budgeting! I'm one who has always paid tithing and 5 years ago became debt free thanks to the Dave Ramsey program. Thanks rachel!
When do you start your budget? On the first of the month? Or the beginning week of whatever week the 1st falls? With paychecks not matching up to actual months, I wasn't sure if this would throw it off at all.
I thought I was going to hate budgeting but it turns out it is so comforting and will never go without one again!
You said give every dollar a job, but there is $497 left over. Your example's total is $2403, not 2900.
+bench175 Drugs...ssshhhh
Jaylen Fast lol tru
I guess the rest can go towards debts.
Lol
tax?
thank you for saying it will take about 3 months to get it right. this was my first month and i failed it. :)
Thanks for the break down :) my husband and I are starting your father's budget and it's nice to see an example in writing.
Everyone's budget and needs and beliefs are different, so I hope everyone takes that into consideration when they watch your video.
Thanks again
I just made my first budget the other day. I have my envelopes ready. When I get paid Wednesday, I will fill them up. Wish me luck lol
+Rachel Cruze You fake troll...
Update?
I do understand what people are saying about this video, especially with the charity, but that's based off one income (which may be difficult). However, my husband and I each bring home that amount so basically the categories are doubled. We are only two people though. I would rearrange the charity contribution and cut back in areas that aren't necessary like recreation and clothing to feed a larger family. Later, when you do need that money for rec or clothing, you can take a small percentage from savings. At least until you are out of debt and then you can start adding back to the unnecessary categories.
A very good & simple explanation of doing a monthly Budget, thanks for sharing.
I have had to understand that the budget numbers will actually be different for each person. My utilities cost is way above 5%. It’s more like 11%. This summer the electricity bill has been averaging $350. We live in Texas and you can’t live without AC here. Our home is a year old and we set our thermostat between 74 and 78 depending on the time of day. Make your budget work for you and your situation. If you can’t give 10% financially right away or choose to never do so, don’t feel guilty. If you can give from the beginning and feel that’s right for you, then do so. Everyone has there own reasons and have to do what’s best for you.
Give 10 percent to God in tithing.... ! Off top everything that's given to us is given by HIM ❤
this is a great set up for a monthly budget. Different areas need to adjust for cost of living obviously and everyone is different. thanks for the great example.
It's really important to emphasize that if you don't use all of the money budgeted for a category that it's ok to change the budget and get that money moved to a place where it's needed more. I know a family that would have money left at the end of the month and felt they had to go out shopping to spend it before the new month began. They had just budgeted a little too much and should have moved the surplus to paying off debt or their savings rather than planning a trip out to Walmart and lunch at a restaurant to get the money gone. I couldn't seem to get through to them that a zero based budget did not mean that their bank account had to be empty when the new month began.
Our budjet focus more on our needs first, and also savings, so is 25 housing, 10 personal, 10 utilities, 10, food, 10 transportation, 5 charity, the rest is savings and debt pay! You first. Because your family needs security. This a nice example but it is a bit much when you cut the needs to feed others!
Just found this and now I understand budgeting for a month, thanks- you explained it easy and simply-will be starting this soon.
There is 18% missing, I watch both your channel and Dave Ramsey's so is the 18% missing the 15% recommended for retirement and the other 3% is for adjusting other categories?
What if you're an absolute baller and like to buy a new gold chain or diamond plated grill every couple weeks or so? Do I just slip that into my clothing category, or should I set up a completely new category for this?
Great example and exactly how I do it!
I searched for "beginner life budget" and your video was the second one I found. Thought it looked great and sounded doable. THEN the video ended, and I saw you wrote a book...with your dad...DAVE RAMSEY. No wonder this looks so plausible! Thanks for the help :)
hi racheal, my husband and I just starting doing a budget. my question is how do you budget things like for health problems. I have an eye disease and wear contacts my solution is going to cost me over a $100.00 a month.
Thank You Rachel, i will try this monthly budget
im in such debt right now ever since lost my job. my hubby is the one holding upbrhe homw now.recently got raise but still barely have enuff left for gas expenses. I just jope things get better financially...and i. hope get job soon.
Not many people like budgeting but it really could be a quick thing to get in control of your money more. Isn't that what we all want?!
this very is very helpful.What's included in transportation? Car insurance, weekly gas for two car, etc?Thx
didn't read previous post.. if you tithe on the net do you make up difference once you receive tax returns?
Yes some rents are different and some eat more than others but the purpose is to learn how to have money left over at the end of the month. I notice most are denying that this works. Again it is stated that she has no debt. She mentions the debt snowball. I would suggest you look up the debt snowball. Most probably will not, but the few that will and follow these guide lines "will" become debt free and never use a credit card again without being able to fully pay it off at the end of the month. Best to your success!
We need to be best friends! I love you. You have so much character and knowledge. I know your parents are proud!!!
If you put money for savings first, if you get to the end of the month and need £50 of £150 you can still save £100.
The thing is to try not to use it, but if you need to ,you can fall back on it rather than ask people
Should't all the percentages add up to 100%? I only get 82%....I'm confused Rachel.
Do you have a video blog that shows how to budget on the EveryDollar app? Specifically, one that shows how to add DEBT to that app without the program telling me I am thousands and thousands of dollars in the hole every month? Or is it possible on that app? Thanks!
I make less than this example and I have been tithing 10% for over 2 years now, starting with fear of not having enough but trusting joyfully that GOD WILL keep His promise.
There has NOT been a day I have lacked a thing. He gives me wisdom to manage my money the right way.
"Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it." Malachi 3:10
Hi Rachel, I was wondering if you could please clarify something for me. So for a monthly budget my BF thinks that we should enter our income as it comes in but I thought that we were supposed to put the average for the whole month. Please let me know, I am really excited to start budgeting and most of all our total money makeover! Thank you! I love your videos
+DITZY034BALLA Exact numbers increases accuracy. The point is to account for every dollar coming in and out during a specific time period so that you don't overspend, overdraw or over save (which is a real thing).
The thing that has really been a struggle for us in getting started with this is medical. Our medical plan has a 5K deductible and both my kids need therapies, some of which are not covered by insurance at all. So even though our income is double plus the average. We cannot seem to balance income with expenses. Until we can do that we can't get to the debt. What is your advice when it comes to affording necessary medical expenses??
+melissa horbal Specialty savings accounts work well. Many people label this one account as savings but depending on the goal and its use savings can mean different types. Emergency (3-6 month living expenses), Holidays, debt payments, car repairs and in your case medical which is usually a near or in retirement concern. So have multiple saving spots so that you don't stop saving thinking you have enough in just one account.
Well done. Keep getting the word out about financial literacy. I'll be going to see your dad for a debt free scream in about 2 years. Can't wait!
Thank you for the video, the challenge is to valance and get the right percentages, I guess it all depends of the specific needs.
I'm here from Daves channel 😊
what if you don't spend the full amount in each category and have money left over at the end of the month? Would you just save it and or reinvest it ?
Do you budget your giving (tithes) based on gross or net? I've always teen taught giving from gross.
Great idea ! It is one of the simple explanation about how to budget your financial every month properly. Nice and goods. Keep it up ! and you can determine it.
percentages differs on certain people, this a great example though ,
thank you
Where does insurance fit in? Do you include it based on the category you're insuring? i.e. home auto life?
I guess in transportation.
You are so fun to watch!!
So what about single, recent college grads who aren't apart of a family unit? Saving and charity percentages would be near impossible if you take into account student loans & working a minimum wage job with no healthcare. Can you do an example for those?
how are you a collage grad making minimum wage?
Thanks girl! What happens when something in the middle of the month comes up that needs to be paid, and it hasnt been accounted for?
+Jaron Pope Thanks for watching! Take care of your four walls first and then pay what you can. Here is a video to help: ruclips.net/video/3_RX4gT20EM/видео.html
+Rachel Cruze I wanted to thank you for the 4 walls link. For people be hind on bills when they don't have enough money to pay everything in this budget it can be overwhelming especially if their bills are more than the 145 for utilities or if their family needs to spend a bit more on food for dietary reasons. Thanks!
I love it!!! Will be watching you again!
This video was really helpful, thanks.
Thanks for watching Christopher! Glad the video helped.
God, thank you for not talking nonsense just like the lady on 15 mins budgeting!😲😲
Do I budget on gross or take home pay and also do I tithe on gross or take home
So glad I came across your channel! I really want to budget and spend wisely in 2017.
Very easy to follow. Great video quality and I think ill have to keep checking you out. Found you through Dave's Channel!
I want to start the monthly budget, but I'm not 100% sure of how much our income will be for the month. Our income varies based on if we work overtime or not. Should I start out our budget with a regular 40 hour week, and go from there? I would love any advice on how others determine their budget. Thanks
I make a super overly complex budget. But I love it. I use 3 tabs..
I also have a expected column and an actual. So if last month we earned 3555 (just a random #) I use that as a guess. Then I can keep the bills and receipts. If the first check of the month is different I can make adjustments. If is was less we can easily cut from our spending money.
All that adds up to only 82%, where is the other 18% going, over flow? What do you consider transportation? Car Gas? or?
+Myeverydaywifelife food it has to go to food because 145 a month is very hard to do for a family of eaters.
My transportation budget includes, gas, insurance, & maintenance fund. Maintenance fund usually goes into a jar on a shelf & is used for oil changes mostly. I still never have enough you spare any to build up a emergency maintenance fund for like a blown out tire anything. $8/month for maintenance jar, then about every 4-5 months I get an oil change. Occasionally have to squeeze a few extra bucks out of something else to afford new wipers.
love the video! super helpful , Thank you so much!!!
Charity should only be given if you can afford it and you have no debt !!
That $290 a month adds up !!
tithe
Do you give 10% of bring home or before taxes?
2 900 take home pay is the Avg!!!!!!!!
After charity saving housing utility, your variable is 931. Divide it by 4 weeks you get $238
I can't afford to give up THAT much to charity
Dani G Guys If you really serious about making money online without selling anything and on hourly basis.... You should try InternetJobsAtHome5.blogspot.com I personally make money with this website
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trust me it will pay off
Gus Razi how?
God requires it, it’s called tithing and he WILL bless you with so much more. I speak from experience 💜
Most people have irregular income. So how do you set up budget?
***** It's gonna be very difficult for me, I so do not earn $50,000 a year before taxes, I earn about $22,000 a year before taxes. please don't laugh.
Very helpful. Thanks very much.
I watched this vid on my PS3. I was so outraged at her ridiculous estimates that I had to pull out my laptop just so I could comment! It looks like MANY folks have beat me to most of these comments, so thank you to them. But, I have to say 145 bucks a month on food is DREAMING !!!!! My wife and I have NO kids to support. We make about 4,000 per months after taxes and spend almost 650 dollars on food (and household stuff, like paper towels, soap, toothpaste, etc.) a month - and we DO NOT dine out that much! By the way, for the family who makes 2900 a month, the FOOD doesn't magically cost less than for them, so they probably spend close to 650 as well, a HUGE hit to their income. Second, I didn't see her include insurance at all. If you dont' get insurance from your employer (thanks, Obamacare), the CHEAPEST health insurance we can get is about 400 bucks a month premium , and that's WITH the subsidy of $171. When you combine renters, auto, life, dental, disability, health insurances, it costs us about 700 bucks MORE in just premiums every month! Her numbers are absurdly off. I dont' know HOW a family of 4 survives on 50 grand a year. We are just the 2 of us, making a little under 60G per year and we have ZERO left over for savings or charity. WE do NOT live glamorously. Not even close. We do happen to be in the Chicago suburbs , which is probably a bit pricier than most parts of the country, but can anyone watching who is part of a fam of 4 and only makes 50G per yr explain HOW you make that work without accruing debt??!!
+jawojnicki She is clueless. Just the child of someone who has financial security and is self-privileged/qualified. Love the donate 10% off the top. These are people who have trouble meeting monthly needs as it stands. Complete fail.
I noticed that your amounts are based on your *net* income. We've alway tithed on our gross income. Wondering if there is a principle that would guide us to tithe based on net vs gross? We have some debt and are working on paying it off, so it will make a difference. After we're debt free I won't care about net vs gross, but while we're doing the debt snowball it is significant. Thanks! Love the channel!
we tithe off gross also. God before government. keep it up! we are in step 2 btw so you're not alone
Hi new watcher thanks for video I never could understand interest rates and how to calculate them can you do a video on how to do them thanks
Which of these categories would health insurance, car insurance, phone, and internet bills fall on this example? Or would they need to be additional categories?
Phone and internet are utilities. I don't count health insurance because it's taken out before I even see it. Car insurance... transportation?
I'm left handed as well Rachel, awesome!
My parents always told us to give 10% of our income too. I have 3 siblings, and we always have except for when we were in university. Every year my siblings get audited, because the government doesn't believe they gave that much.
Great video! Thanks for being awesome!
I live in NYC, so.... 450 in food and a 1000 to live in a room just to start plus 121 for a monthly MetroCard
Great video Rachel!
I'm sorry, but if I'm in debt I'm not donating 295 dollars per month. I'll use that to pay off my debt and once I've paid it off, I'll start donating
Exactly my thoughts! People can give 10% of their SAVINGS, thats totally okay. But not 10% of total paycheck. Thats ridiculous. Its not free money.
Zero-based budget? There is still $497 unaccounted for. Did you intend to leave this off in order to help us?
You lost me at charity. That is a ridiculous amount. These numbers are clearly made up by someone who has never lived in the real world.
She took 10% as a tithe because she’s a Christian. So yes for many people, actually millions of them in America, this is real world budgeting. And if you know about Dave Ramsey then you understand that there’s a certain discipline and desire to live like this so you can live like no one else.
I'm a big fan of yours
Hi, Rachel. How would you recommend budgeting someone like me whose income (disability) is a tiny fraction of your example? In my case it's well below 1k/month, and I have around 4k in debts, mostly credit cards. (Should I put the almost-2k in a mutual fund toward the credit card, for example?) I'm currently with my parents near San Diego, CA, but at 33 I really need to get out on my own. (I hope your dad doesn't blow a gasket if he sees this comment.) Housing is high here, though, so I really need to find some work. I'm super afraid of failure and discouraged from failures in past years, though. Should I take out a mortgate on a copy of, say, Start, or 45 days to the work you love, or some other book that might give me some guidance to help me get past that? As for the type of work I'd be looking at, when I was in college (which I never finished, cause I was diagnosed with Aspergers when I was about 20 and dropped out of college around that time) I was looking for something computer related. I still love computers, but I think based on talents I know I have (playing piano for example) I'd be better in an artistic field.
(I originally had a much longer post typed up, but it included details that, while maybe helpful to know how to point me in the right direction, would be better not posted online in public.)
Easy breezy! Love it!
Nobody on a budget of 2900 can afford to give away double the amount to charity/tithing than food. Food is a basic need and have you been inside any grocery store lately? $145 may work if you live on Ramen and lettuce.
+kidpsych2be untrue. 2900 is a lot of money. we make about for a family of 3 its more then enough.
we eat well, live modestly, save a lot
Hi Rachel, I really love listening to your dad's radio show and watching your videos. I live in Australia and everydollar is not available in the Australian App Store. Apple won't allow me to buy the app from the US store. Please make it available in Australia! :)
Awesome videos!
Watching from NZ. Sadly housing in Auckland is 50-80% of income for a lot of people.
I will first like to Thank You for taking the time to do this video. I'm sure it will be very helpful to many specially those who've never been exposed to budgeting before. However your numbers, several of them, are highly unrealistic!!!!! Housing...$750? Where is that...Kansas? Family of 3-4 spend $145 a week in groceries not a month and that's being conservative. Utilities $140/month?? In Winter months that's electricity alone, we haven't even scratched the surface with water, sewer and trash. I think taking in consideration the real lesson and intention behind the video, folks should budget according to their realistic expenses, leaving out the unnecessary and remembering to always save a little!
And this is why we’re all in debt! Because food alone is over $500 a month
And that’s for people who eat out of a box from Walmart we probably spent $1200 a month on food because we eat healthy
What apartment is 700 bucks for a family of four yeah right
And I could go on and on with this list.
Smh 🤦🏼♀️
Hi Rachel! I love this model. I get paid twice a month so my expenses from my first paycheck typically go to covering my housing and utilities without much leftover. Do you have any tips for a 2 week budget system or how to make this work for those of us that are paid twice monthly? Thanks!
Devide every thing by two and pay that each forthnight and you will have money left over
My husband gets paid twice a month as well and what we do is take 1/2 his check from the end of the month to go toward the next months bills and that eases the burden of so many bills coming out or one check. I hope this helps
I am a big fan of your daddy and you. btw, where to categorize the insurance (home, car and medical...etc)
if I do go out to eat, I eat at cheap fast food restaurants where no one has to tip, i.e. McDonald's, Burger King, Wendy's, Taco Bell. They don't go for that. Not at these small business mom and pop restaurants where obviously they charge a bit more for food.
What happens when the housing is more than half of your paycheck? I don't know of any place (at least in the Bay Area) where I can live for $750 :/
this is... just wrong I think.
1. savings is not an "expense"
2. you should prioritize debt expense before you look at other expense. this is a mandatory and not discretionary expense. should prioritize THIS number above other numbers
3. why should you give 290 to charity and only 100 plus for food for yourself for a month ? how is that realistic
4. as opposed to saying this much percent for this this much percent for that it should be more realistic advice or mathematical methodology . for instance...when it comes to transport...the advice should be... assume you spend $xx per day both ways to and from work...multiply by 30 days. why is it a percentage ? it CAN BE calculated!
anyway that is my opinion... that this could have been a much better video.
The begin making your own videos, share your opinion further.
+Ian Johnson I have never made a RUclips video ever. but tbh I do feel inspired to do one
munna k Maybe you should. However, I agree with Rachel that savings should be an expense. It is an expense for the unknown future, it is an expense for financial security. Every dollar should have a home, it is a great way to avoid unnecessary spending.
1) She just means 'expense' as in something you set aside money for. It was clear she was not being literal as we all know savings isn't an expense but you should have a rule of thumb to set aside a certain percentage of your income for savings (15% by most advisors, with most being set aside for retirement)
2) If you know Dave Ramsey, his method is that you eventually don't have debt. But even if you do, she mentions it at the end of the video that you need to subtract other stuff to fit those payments in there. So that is her implying it is not a discretionary item. Also, you shouldn't focus on paying debt above having food or shelter.
3) The 10% is a Christian principal of tithing and giving first fruits to God. The idea that all money is a gift from God and we are to be stewards of what we receive and part of that responsibility is helping others above yourself.
4) And I disagree. The percentages I found very helpful. The calculations you mention would be very specific to an individuals situation, but knowing a rule of thumb of what one should be spending per month can help see where your expenses might be more or less than the norm. Clearly some expenses will be more variable than others based off the number of people in the household, distance from work, size of house, etc. Percentages is more of a baseline.
you can give 10% to charity, but the charity will only give 10% of your donation to those in need while 90% of it is used for marketing and salaries of those running it lol. do yourself a favor and keep it as part of your rainy day fund.
Not all charities run the way you just described, do some research on it.
Try giving tangible items instead of cash? We have a homeless shelter close by that needs food, clothing, toiletries, etc. If I give them a 5 pound bag of oatmeal, they will give 5 pounds of oatmeal to those in need.
TheKacy777 Good suggestion!
Yeah charities have no accountability
Who can go an entire month on $145 in groceries please explain that to me. Not even an extreme couponer these unrealistic expectations for ppl drive me nuts!
Yeah no kidding that's like a lot of top Ramen. YUCK