I went through monthly spending and categorized the totals. I came up with the following:
Amount spent on:
Housing - 22%
Other Needs - 35%
Wants - 12%
Savings - 10%
Debt Repayment (or largely past wants) - 20%
According to Disney Steve in the forums the benchmark is 50% Needs, 30% Wants, and 20% Savings. In those terms my breakdown would be:
57% Needs
32% Wants
10% Savings
Monthly Spending
June 25th, 2012 at 02:24 pm
June 25th, 2012 at 07:42 pm 1340649750
We found it immensely helpful to create a 'thermometer' looking poster which we tacked up in the hall private space adjacent to the bedroom door which was colored in each payment. It was beneficial because it was a visual for each of us to see and helped us remember and understand why other spending was deferred until the debt was g-o-n-e. It helped assuage those feelings of being deprived or hard done by.
June 26th, 2012 at 01:26 am 1340670385
If you divide your minimum debt payments (needs) and your extra payments to principal (savings), your ratios are outstanding. Paying off debt faster is a contribution to the future, so it kind of makes sense.