Are Dave Ramsey’s Budget Percentages Wrong?

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This is a consolidation of three widely used recommended percentage budgets from Dave Ramsey, Credit Counseling Advice, and Consumer Credit Counseling Association:

Charitable Giving             0-15%

Housing and Utilities     20-45%

Food                                    5-20%

Transportation                  6-20%

Medical                                2-10%

Clothing                               2-7%

Invest/Savings                   5-13%

Debt Payments                  5-20%

Personal/Recreation        5-10%

When the three are combined for range, the range becomes too wide.  Let’s see if I can justify narrowing it a bit. Continue reading Are Dave Ramsey’s Budget Percentages Wrong?