Budgeting for a household with a take home pay (post-tax) of 80k per year. To help you understand how budgeting works, here’s an example of a household earning $80,000 per year.
$80,000 per year translates to $6,666 per month. Going by the 50:30:20 principle, here is how it looks like:
Rental or expenses on mortgage = 1133
Transport (Fuel, auto loan, etc.) = 500
Groceries and food = 500
Student debt = 400
Utilities = 450
Insurance = 350
Dining out, mall visits, etc. = 400
Entertainment = 350
Children's expense = 275
Holidays and gifts = 185
Clothing = 150
Subscriptions = 200
Miscellaneous = 279.80
Retirement account = 800
Investments = 333.20
Other savings = 200
Total expenses = Needs + Wants + Savings = 3333 + 1999.80 + 1333.20 = 6666
The above is an illustrative budget for a young married couple with small kids. The budget would change with time. There would probably be home loans and other expenses in the future. Budgeting for college is another area that needs to be looked into. This would call for increased savings. However, as one advances in their career, they would earn a higher income, which should support increased savings.
The above is an example of a balanced budget. In practice, it is possible that a person’s expenses could be more than their earnings or not leave enough for savings. In such a situation, one needs to look at other sources of income like part-time work, home business, etc. The other option is to make sacrifices by drastically cutting down on wants to balance the budget.