Knowing what percent of my take home pay I could spend ON THE BIG THINGS really turned my life around.
I started with Dave Ramsey’s Gazelle budget.
Here are some basic guidelines of the biggies:
Housing 35% MAX
Cars 15% MAX
Housing, all in:
Rent or Mortgage + tax 25%
(on a 15 year mortgage)
renters insurance. 10%
Housing, ins, utilities. 35%MAX
If you are over, move or sell your house!
I’m giving you a hug here. We are all mislead as a nation that we NEED a HOUSE and the AMERICAN NIGHTMARE. Renting is patience, says Dave Ramsey. Renting is ok, say I.
CARS (All cars). 15%
(Max 36 months finance)
Over? Sell them and drive a hoopty for a while (temporary)
Really?!! Yes. Find out what your car might be worth at kbb.com and sell your car and pay cash for a hoopty.
Remember, this is TEMPORARY.
Excellent! You have just stood in your truth!
I bawled for days, but soon, I saw the monster I was facing and how to begin fixing it.
For the first time in years, I had hope.
It’s time to hope!
Step G. Lowering your essentials coming soon.
Image from stillruns.com