Ah a Dave Ramsey quote to start out with so you can expect a pretty typical break down for a budget here. The thing about budgets as they are plans, and one thing I've learned about plans is that they do not survive contact with the enemy. A budget is gives you some good guide rails but we want as much wiggle room as we can get especially in the first year.
Now from Episode 2 we know we have 13,926.38 after Social Security and Medicare. We also have 3,080 bucks that we need to figure out what we are doing with or we get taxed on it. Our budget is going to be based on a 800 dollar a month total spend, this leaves us some wiggle room between our after Social Security and Medicare amount - 13,926.38 and the 3,080 dollars we need to figure out (13,926.38 - 3080 = 10,846.38) and our yearly spend of 9,600.
I'm using Some pretty general rules here but we have to carve up that 800 bucks into a game plan.
Just like in a survival situation we have some Priorities. In the survival shows that I end up binge watching things are tackled in the order that they kill you.
Shelter - Fire - Water - Food
The great part is that in modern America our Shelter covers the first three things with ready access to potable water and typically some form of climate control that replaces our need for fire.
1. Shelter 30% of our budget - $240
2. Food 20% - $160
3. Transportation 20% - $160
4. Phone 10% - $80
5. Insurance - This will be covered with Pre tax dollars - part of that 3,080 bucks. A quick google has plans at $25 bucks a month. Personally I would aim for a HSA account because most of my yearly health care costs have been dental which is separate from a health care.
This leaves 20% or 160 bucks to play with in all the other fun categories such as personal spending, saving, and giving if following Dave Ramsey. (At this point though if you do want to be giving I would recommend giving time rather then $$ as you need people giving you $ in exchange for your time.)
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