Budget busters are areas that can lead you into financial disaster. When you overspend in one or more areas of your budget, other areas must be reduced to compensate for the overspending. Otherwise, your budget won’t balance and you’ll start to incur debt. We’ll discuss the most common budget busters below.
The following percentages are for a 4-member family with an annual gross income of $130,000 or less. Net Spendable Income (NSI) is the amount that results after tithe and taxes have been subtracted from gross income.
Housing (38 percent of NSI)
Food (12 percent of NSI)
Automobile (15 percent of NSI)
Debt (not housing or auto – 5 percent of NSI)
Insurance (5 percent of NSI – if your employer provides medical insurance)
Recreation/Entertainment (5 percent of NSI)
Clothing (5 percent of NSI)
Medical and Dental (5 percent of NSI)
Savings (5 percent of NSI)
Remember that budgets don’t operate on auto-pilot; they require effort and family understanding. If you’re determined to achieve and maintain a debt-free lifestyle, living on a budget is essential. Don’t bust your budget.
Reprinted by permission from Crown. Originally posted 2/16/12.
Resources From Crown (items such as financial calculators. tips to improve credit scores, worksheets, spending tracker, and much more!)
More Blog Posts from Crown
Crown Financial Ministries is a 501c3 nonprofit organization supported by donor funding and product sales. Our mission is to train God’s followers to be good and faithful stewards in their personal finances and career. Read more about Crown’s ministry in action here.