Rule of thumb for budgeting?

Bringvaluetome

Hi all.
Really looking to get my finances in order this year. 
As a rule of thumb, what percentage of salary should go towards things other than outgoings?
Entertainment, going out, spending money on kids etc?

tempus_fugit

There is no "rule of thumb". It depends on your circumstances and your priorities.

kuratowski

I think what you spend on entertainment, going out, etc, ought to be within what you can comfortably afford after paying the bills and after having considered saving for your future needs. Just saying this because you didn’t mention savings at all in your question. 

Thrugelmir

I'd set the savings % first. What's left can then be used for discretionary spending. 

Tutington

A well known one is 50% needs (bills, groceries, toiletries, clothes, transport, minimum credit card payments), 30% wants (eating out, holidays, fun, hobbies, gym membership, luxuries, gadgets etc.) and 20% savings (emergency fund, pension contribution, any other savings). 

twocents.lifehacker.com/10-good-financial-rules-of-thumb-1668183707

Neil_Jones

Mr Micawber's famous, and oft-quoted, recipe for happiness: "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

(David Copperfield by Charles Darwin)

Ken68

You also need a method of reducing your costs on existing spending. So motoring could become cycling or walking and maybe a cup of tea instead of champagne. Keep looking for cheaper alternatives.

strawb_shortcake

Tutington said:

A well known one is 50% needs (bills, groceries, toiletries, clothes, transport, minimum credit card payments), 30% wants (eating out, holidays, fun, hobbies, gym membership, luxuries, gadgets etc.) and 20% savings (emergency fund, pension contribution, any other savings). 

twocents.lifehacker.com/10-good-financial-rules-of-thumb-1668183707

Just worked my percentages out, family of 5, I'm the sole earner on an above average but modest salary
Bills and essentials 60%
Savings 20%
Other 20%
I'm really trying hard to get the 60% down and my other 20% could be better spent, but I don't think I do bad with my current constraints 

ZeroSum

I thought it was a third each
33% housing & bills
33% Saving (which includes  non mortgage 'capital' costs)
33% for holidays, entertainment & general fun. 

Robin9

Bringvaluetome said:

Hi all.
Really looking to get my finances in order this year. 
As a rule of thumb, what percentage of salary should go towards things other than outgoings?
Entertainment, going out, spending money on kids etc?

Perhaps your first move should be a SOA  which goes through your income and expenditure in detail together with a daily spending diary for all those cups of coffee, nipping into the supermarket ………….

Takmon

ZeroSum said:

I thought it was a third each
33% housing & bills
33% Saving (which includes  non mortgage 'capital' costs)
33% for holidays, entertainment & general fun. 

It's ironic how your username is "ZeroSum" and yet your post leaves a remainder of 1% unaccounted for 

But any generic rule showing percentages is rubbish anyway because all expenditure should be reduced to a minimum acceptable level and the remainder should be put into savings. This will be a different percentage for every person on here.