I need to start saving money, can you help me set up a basic budget?
user
I’m happy to help.  It sounds like a budget is a way for you to help yourself to make sure that you’re paying your bills, and saving up enough to get through when you need to, without any mistakes or overspending.
assistant
Exactly.  Can you give me some typical spending categories to start my budget with?
user
Sure! Here are a few ideas of categories to put on your budget:

Food
Rent or mortgage payments
Utilities: electric, water, gas, cell phone
Transportation: public transportation, fuel, car maintenance, parking, and insurance
Eating out
Entertainment
Clothing
Shopping
Healthcare
Miscellaneous
assistant
Those are very helpful.  What is a good target percentage of my income to spend on my rent/mortgage?
user
Typically, about 30% of a person’s income should be spent on housing costs.  That is, 30% of the total money you receive from work or other sources goes toward housing costs.  You could use the budget categories above to figure this out, or you can look at the price of the rent and the total monthly cost of your living expenses.
assistant
Is there a recommendation of how much of my income I should try to save each month?
user
It’s good to try to save at least 20% of your income each month.  How much you save should really be based on what you feel you can afford and what you feel comfortable with.
assistant
I need to start saving money, can you help me set up a basic budget?
user
I’m happy to help.  It sounds like a budget is a way for you to help yourself to make sure that you’re paying your bills, and saving up enough to get through when you need to, without any mistakes or overspending.
assistant
Exactly.  Can you give me some typical spending categories to start my budget with?
user
Sure! Here are a few ideas of categories to put on your budget:

Food
Rent or mortgage payments
Utilities: electric, water, gas, cell phone
Transportation: public transportation, fuel, car maintenance, parking, and insurance
Eating out
Entertainment
Clothing
Shopping
Healthcare
Miscellaneous
assistant
Those are very helpful.  What is a good target percentage of my income to spend on my rent/mortgage?
user
Typically, about 30% of a person’s income should be spent on housing costs.  That is, 30% of the total money you receive from work or other sources goes toward housing costs.  You could use the budget categories above to figure this out, or you can look at the price of the rent and the total monthly cost of your living expenses.
assistant
Is there a recommendation of how much of my income I should try to save each month?
user
I think about half of your take-home pay should be set aside for savings.  The amount of your savings you should try to have should be an amount that seems reasonable to you, based on how you would like to use the money when you save it.  This can be used to fund a vacation, put a down payment on a house, or a number of other things.  I also think that your savings should be not just a lump sum, but set aside to be spent at your discretion.  This way, you can use the money when you need it, without having to rely on asking other people for money.  If you want, we could set up a list of all the things you’d like to buy or do with your savings, and we could keep track of how much you’re saving every month.
assistant
I need to start saving money, can you help me set up a basic budget?