What is a Spending Plan and Who is Dave Ramsey? – FT003

The financial tech podcast is back and this week Jim Collison and Andrew Hunt walk thru the basics of a spending plan.  Oh, so you are talking about a budget?  Nope, listen and hear how a spending plan is different and why you need to have one!

So is it possible to create a Spending Plan that Works?

When you sit down to budget spend every single dollar “on paper.”  Includes – Spending, Saving and Sharing.  A Zero balanced budget leaves no room for slush money, you are way less likely to fudge when every dollar is accounted for.  Remember its your money!  If it takes $1000 per month to feed your family, so be it!  Remember you can’t spend more than you have – this isn’t the federal government.  Averages are not usually a good thing but people want to know where they stack up:

· Charitable giving: 10-15% of Income

· Saving: 5-10% of Income

· Housing: 25-35%

· Utilities: 5-10%

· Food: 5-15%

· Transport: 10-15%

· Clothing: 2-7%

· Medical: 5-10%

· Personal: 5-10%

· Recreation: 5-10%

· Debts: 5-10%

http://www.daveramsey.com/home/

Andrew’s Blog: http://gallupfcu.blogspot.com

Andrew’s Twitter: http://twitter.com/#!/Adhunt586

Jim’s Twitter: http://twitter.com/#!/jcollison

Contact the show at podcast@theaverageguy.tv