Now that I know how much is coming in, I need to allocate it to the various expense categories. I did a search on the subject of “budget”. And I found no shortage of ideas. It just seems like everyone has their own set of rules for budgets. I think it has to do with the fact that everyone is different and their situations are different. So, what is good for one person may not necessarily be good for another person. Having said that, here is my spending plan. Keep in mind that the percentages are based on Net Salary (as opposed to Gross Salary).

40%	Home
5%	Utilities
15%	Food
6%	Transportation
14%	Savings
10%	Recreation
10%	Miscellaneous

As you know, I do not yet own a home. So, the home category (less rent to parents) is really more like savings for the downpayment. I created the spending plan with the idea that I did own a home. I wanted to get the feel of how my spending would be curtailed when I do eventually get a home. It is better to find out now rather than later if I can live with that spending plan. Also, this will tell me how big of a mortgage that I should get.

Pondering upon these numbers for a minute. Think about your situation and your spending plan. I will leave some more comments the next time.

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