I’m getting out of credit card debt but also trying to make sure that I don’t put myself back under, so I want to ensure that I’m not spending above my means. Here are my current finances in a percentage perspective:
8% retirement
28% mortgage
27% debt (paying above the minimum)
11% spending (gifts, events, special occasions)
7% pet expenses
6% vacation
5.5% food (includes eating out)
3% bills
3% house cleaner
1.5% car insurance and maintenance
1.5% emergency money
Almost 1% donations
I’m trying to balance enjoying life with paying down debt. Any thoughts?
You might want to reduce your spending. For instance, cut your events and gifts spending down to 5% and eliminate vacation expenses for now. This could significantly increase your debt repayment percentage.
Your budget seems well-rounded, especially with a strong focus on debt repayment. As long as you’re mindful of luxuries and they don’t derail your goals, it’s okay to have some enjoyment in your budget.
Your fixed costs portion is good at 45%, but consider scaling back retirement investing until you’re out of high-interest debt. Every dollar not going to debt is costing you more in interest.