The answer to this question varies person to person; this may be for a number of reasons,

  1. It largely depends in the region or city you stay in, if you are staying in a costly city then you are spending more on the items that are available at lower rates in small districts.
  2. The other factor is family; it is unimaginable that two families would be alike, they may be same in count but not by their needs. The size of your family also affects your budget.

So now we know that same budgeting guidelines do not work for every individual. Credit cards are not for spending how much you want to but a controlled shopping device ‘use it when you need it’. They find themselves in a position where they are carrying debt; their examples can be used as guidelines on how to spend. The general method to follow for each individual is as follows:

  • To start with track your expenses for at least two months to get a clear picture on your expenses
  • Now make a record of all your expenses by entering them in a notebook or creating a simple excel spreadsheet or using software programs like MS .
  • Now keep reviewing each category that you have created every month so that you can make significant changes to reduce your overall expenses.
  • To know more about expense reducing tips log on to the internet websites and read online articles or read magazines.

The US Bureau of Labor Statistics, Consumer Expenditure Survey shows us the latest percentage of what people spend in each category.

  • People spend 7.7% for food at home.
  • People spend 5.4% for food away from home.
  • Many of them spend 1.0% on alcoholic beverages.
  • People spend 32.9% on housing rent, renovation, etc.
  • People spend 4.0% on apparel and services.
  • People spend 9.1% on their vehicles (buying a new one, insurance, servicing, monthly premium, etc.)
  • People spend 3.3% on gasoline and motor oil
  • People spend 6.7% on other transportations such as , bus, train, taxi, flight, etc.
  • People spend 5.9% on healthcare.
  • People spend 5.0% on entertainment.
  • People spend 1.3% on beauty products and services.
  • People spend 2.2% on education and reading.
  • People spend smoke .7%
  • People spend 1.5% on miscellaneous products.
  • People spend 9.9% on personal insurance, retirement policies, etc.

This is just an idea to show you that how others spend but as I have told you earlier others budgeting plans may not suit for you. So the best thing to do is take the tip that suits you reduce where you are spending more in the above list.