How Average is Your Spending?

How does your spending and budget compare to the average American?

Experian put out an awesome article on how to make a budget, and they included the stats for 2015 and 2016 on how the average American spends their money.

So here’s an interesting question–how does YOUR spending compare to the average American?

If you haven’t completed your budget yet, check out this article on A Plan To Spend Money.

Now, when you have a good handle on your budget and are ready to create a spending plan for the year, check this out:

The average income in 2016 before taxes was $74,664 and the average expenses were $57,311, the highest expense being housing at $18,886. If you want to see the whole breakdown by Experian, check it out here.

What amazes me the most, is there is no INVESTMENT or SAVINGS line. As it stands, the average American’s income–nearly 65% of everything you work for–is going to BILLS. This does not including entertainment, miscellaneous spending, and contributions.)

What this says to me is that the average American is living paycheck to paycheck. (Although I didn’t need stats to tell me that because the people in my community say the same thing…)

It’s my personal mission to get everyone out of the rat race and increase CASH FLOW. This is a perfect segue into today’s tip: TAKING ACTION.

I don’t know your personal situation when it comes to your budget, so Ill give my best three generic tips when it comes to taking action. No matter where you are budget and spending-wise, these tips will help you take your power back! 

So here we go:

• Tip #1. Start saving a percentage of your income. Even if you have to take money out next week to cover bills, get into the habit of moving 5 to 10% of your income into a savings account. This will help you think twice before making an impulse purchase. It will also help you strengthen your savings muscle!
• Tip #2. Take out cash for entertainment/miscellaneous purchases. For things like going out to eat, grabbing a meal/coffee/soda on the go, buying little gifts, etc.- these things add up SUPER fast. So set aside some cash for these here-and-there expenses. And when it’s gone, it’s gone. 
• Tip #3. If you have a lot of debt, take consider liquefying your assets.  (AKA Sell shit you don’t absolutely need! 😉 ) Want to increase your cash flow, or pay off credit cards or outstanding loans? Look at what you’ve accumulated that no longer serves you, or that isn’t worth having a loan for. For example, let go of an extra vehicle you don’t use that has a loan. Bring clothes you don’t wear to consignment shops. Or having a garage sale to clear out what you don’t use anymore. Set a goal, then sell what you don’t use. Then, spend that money as you intended to pay off debts.

So how does your spending compare to the average American, and are you happy with it right now–or are there changes you’d like to make?

Tell me about it in the comments below!

Until Next Time,

Love, Light, and MONEY, Honey…

Kaylee