Personal Budget Simulator

Organize your finances and discover where your money goes

Income

Monthly net income

Other Income

Expenses by Category

Rent/Mortgage

HOA/Condo Fees

Property Tax

Home Insurance

Groceries

Market

Bakery

Savings/Investments

Amount for monthly investments

Why Have a Budget?

A budget is the foundation of financial health. Without knowing where your money goes, it's impossible to save consistently, reach financial goals, avoid debt, and build wealth.

70% of people don't track their budget. Of those, 40% end the month in debt.

The 50/30/20 Rule

Simple method popularized by Elizabeth Warren:

50% - Essential Needs

Housing, food, transportation, health. Expenses you NEED to pay to live.

30% - Lifestyle

Entertainment, hobbies, restaurants, non-essential shopping. Expenses you WANT but can reduce.

20% - Savings and Investments

Emergency fund, investments, retirement. Building future wealth.

It's not rigid: Adapt to your reality. Expensive housing may require adjustments.

How to Use the Simulator

1
Fill in your income: Main salary + any extra income
2
List ALL expenses: Be honest and complete. Include small expenses
3
Use your bank statements from the last 3 months for real values
4
Categorize correctly: Essential vs Lifestyle. Netflix is not essential!
5
See results and insights. Identify where you're overspending
6
Implement changes based on suggestions

Tips for Budget Success

Track EVERYTHING for 3 months: You'll discover expenses you didn't know you had

Prioritize fixed expenses: Housing, transportation, health. Negotiate whenever possible

Watch out for small expenses: Coffee, delivery, apps. $10/day = $300/month!

Automate savings: Transfer to investments as soon as you get paid

Use 50/30/20 as a guide: Doesn't have to be exact, but if way off, there's a problem

Categorize honestly: Don't call Netflix essential to justify spending

Have wiggle room: Unexpected things happen. 5-10% for miscellaneous is wise

Review and adjust monthly: Budget is alive, not static

Frequently Asked Questions

How much should I save per month?

Minimum 10% of income. Ideal: 20%. Excellent: 30%+. Any amount is better than zero. Start small and increase.

My essentials exceed 50%. Now what?

Common in expensive cities. Options: increase income, reduce housing (live farther, roommates), or adjust to 60/25/15.

Nothing left at month's end. How to save?

Track expenses to find leaks, cut one item at a time, automate 5% of income to savings BEFORE spending.

Should I include entertainment in the budget?

Yes! Cutting all entertainment is unsustainable. Allocate reasonable amount (15-20% income) and use guilt-free within limit.

How to handle annual expenses (taxes)?

Divide by 12 and include as monthly expense. Save that amount monthly so you're not caught off guard.

Is it worth using budgeting apps?

Yes! Apps automate tracking. Saves time and gives clear visibility of your finances.

I have variable income. How to budget?

Use average of last 6-12 months as base income. Or use lowest value (conservative). Good months = extra savings.

How much is normal to spend on each category?

Housing: 25-35%. Food: 15-25%. Transportation: 10-20%. Health: 5-15%. Varies by city and lifestyle.