What Is a Reasonable Budget?

In tough economic times, it's critical to keep an eye on your budget. When someone is putting together a budget, he should structure it so that it first consists of necessities such as rent, bills, loan repayments, groceries and gas, then trickles down to non-necessities such as entertainment, clothing and dining out. As many people construct their budgets, they may wonder what is reasonable to include in it and what amount of money is reasonable to allot in their budgets.

The function of a budget is to help people plan how they will spend their money. This helps people keep track of how they are spending their money and generally helps people save money as a result. A budget is generally created on a spreadsheet and can be written or typed. It lists each necessary expense and a general amount for how much that expense costs each month. Then, it lists additional expenses that are variable, such as dining out and entertainment, and a maximum amount that can be spent on each one.

A reasonable budget can differ from person to person. In general, each person's budget depends on her income and spending needs and habits. These are the things that a budget tracks. So, for example, if a person makes $4,500 a month, her expenses should not exceed that. In her budget, she will allot a certain amount of money to each expense so that she doesn't exceed a total of $4,500 a month. This helps prevent debt.

When money is tight, it can be difficult to figure out how to create a reasonable budget and what exactly a reasonable budget is for you. The best thing to do is to write out all of your bills for the month. Look at how much you spend on rent, groceries, gas and bills, and create a maximum budget for each item.

A reasonable budget also depends on your income. What may be reasonable for a person who makes $10,000 a month is not reasonable for a person who makes $4,000 a month. Other things to take into consideration when figuring out a reasonable budget for you are savings issues, such as whether you are saving for a down payment on a home or a new car. This can also affect your budget, because you will have to skimp in other areas of your expenses in order to allot for savings.

Creating reasonable budgets should apply to all aspects of life, in addition to personal budgeting. When you learn how to create a personal budget and learn what budget is reasonable for you, this can help you save money in other areas of your life such as wedding planning and taking vacations.