Thursday, March 4, 2010
Average American Budget
According to the Department of Labor the average American spends:
34.1% on Housing + 7% Utilities + 6.9% other Household expense
17.6% on Transportation + 12.8% on other Transportation expenses
12.4% on Food at Home + 5.4% Food away from home
7% on Entertainment, Alcohol, Tobacco
13.3% on Miscellaneous, Healthcare, Personal Care, Clothes
2.1% Reading, Education
In comparison, our annual expenditures for 2009 came out to be:
18% in giving, tithe, donations
14.5% on Food, groceries, eating out
8% in gas, auto insurance, repairs
8% in utilities (water, gas, internet, phone)
6% for misc shopping
2% for education
We were fairly even with the average American on many things. Higher in terms of rent/mortgage since we are going for early payoff, less on transport since all our cars are paid for and no financing on any of them (we got clunkers). As for eating at home and eating out, we are a little bit below the average, but I want to see it lower. Utilities and education are average. We have really low entertainment and misc shopping expenses. I think this has to do with having kids. We stay home more, we play, watch tv, dvds, sing songs, color, simple stuff that doesn't require hundreds of dollars.
We are planning a trip to L.A. later this month and a birthday party for the girls. So we're gonna take a hit financially, but like I said before, money is just a tool for us to build relationships.
Flight for four to L.A. $700
Rental Car for a week $150
Pool Party $200-300
Time with friends and family: Apparently it costs $1150 or 1 week of work.
What can a budget do for you?