I have a question related to personal income and budgeting. My significant other and I have been vexed by this so I would love any input.

What percentage of your monthly income do you spend on: A. Mortgage/Rent, B. Credit cards / Personal Loans, C. Other expenses ?

What percentage of your income do you put into savings?

Using myself as an example, of my income over the last 6 months (also my partner does not work and we have 2 children): 32% - mortgage, 20% - Bills and utilities, 10% - loans (school loans, Credit cards etc), 18% - food and dining, 7% - education, 4% - auto, 2% - gifts and charities and only 3-6% into savings.

The issue is, we feel like we are being pretty frugal etc, but can never seem to get ahead. It feels weird to be making so much money but still feel like we are living month to month. We have been prioritizing paying off loans, since it makes sense. Home improvement projects seem to get expensive too (all DIY), since we bought an older home and want to make it feel livable.

There's this voice in the back of my head telling me that every other person in my position (making a decent salary) has their shit figured out: 1. not overpaying for their living space, 2. socking away tons of money in savings each money, 3. living frugally, 4. plans to retire by 35 etc.

I can't help feel a bit crushed having bought into "the system" and perennially feel like I need to be making more money just to keep up.

Feel free to share any thoughts or strategies related to this.

What hacks do you know to either save money or that have helped you establish some financial security.

Addendum:

People are providing some really good advice on this thread. I want to outline some additional details.

Current Lifestyle:

Take lunch everyday to work, CHECK

Walk or bike to work, CHECK

Cheap Hobbies: Veggie gardening, Meditation, CHECK

Buy used stuff rather than new, CHECK

Drive older car, CHECK

Budget software, CHECK

Entertainment.all.first == Netflix.find_by_price($8.99)

Entertainment.find_all_by_name(cable, TV, video_games).empty? == true

EDIT: formatting, updated percentages, notes

user:	rwk
created:	January 5, 2010
karma:	7