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This is a great exercise to see if there are any financial anomalies in your house that are out of whack. The spreadsheet (Recommended Percentage spreadsheet) includes high and low percentages recommended for 11 categories. How do you compare to someone who is debt free? Follow the instructions in this episode to find out. Note: This is not for budgeting, it is a tool only to be used in comparing each of the generalized categories to recommended percentages. And, of course, your mileage may vary.
How to use the Recommended Percentage Spreadsheet
Enter your expected take-home pay in the first yellow box at the top. This will formulate all the recommended amounts and percentages for you in the suggested ranges for each category.
Enter the amount you spent for each category last month or what you anticipate to spend this month. Feel free to use round numbers.
The spreadsheet automatically calculates
Your percentage of income spent (or will spend) on each category (in blue cells)
Your amount (over or under) spent versus the high recommend (in orange cells)
Your percentage spent over the highest recommended percentage (in orange cells)
What if I’m debt free (except the mortgage)
I give my recommendation percentages for households that are debt free in the blue cells. You can also see in the green cells.
Imagine the increased percentages when the allocated percentage for debt is $0. You could put more into Giving, Saving, or even Fun & Recreation. Now THAT’S something I would highly recommend!
Holla From The Impala:
Happy Vadertines Day!
I want one!
Reminder: I’m goin’ back to Cali on February 29th, 2012. I would love to meet you at Lucille’s BBQ at 11338 South St in Cerritos, CA around 7pm. Let me know if you are coming!
You wanted some feedback and I could not until now figure out how to make it beneficial to you. I like listening because I want personal finance information but I just think it comes off a bit boring. However, you sounded completely different in this Holla from the Impala. Your voice was different, it sounded like you. It was more natural and passionate and way more entertaining to listen to. It had nothing to do with what you were saying, it just sounded way better. So maybe rant more. It has to be entertaining and it was. But I have still been listening to you every week on stitcher for at least 6 months now. Thanks so much for doing it!
Thanks Jared! This is the perfect place to leave feedback (good or bad). I’m sure to see it as well as anyone else visiting the posts.
I was shocked that you listened to the episode within the first 12 hours of release! That’s awesome! Because you are such a dedicated listener I will try to rant a bit more often (just don’t get me started on the “build your credit crap”, I’ll really make some people mad).
Thanks again!