![]() What about restaurant spending? The average per household is $2,375 a year (around $198 a month if you divide it equally). Families of four spend between $928 and $1,109.While we don’t have a set percent here, we can give you some national averages of what Americans spend on groceries each month in the “moderate” spending range: 2 When we’re not making or consuming food, we’re thinking about food, right? It’s no wonder this budget line is one of the hardest to wrangle. Pro tip: Learn more about walking the 7 Baby Steps.Įating in, eating out. This time, we have a solid percent for you: At this stage of the game, you should be investing 15% of your gross income for retirement savings. Once you’ve paid off your debt and are sitting on top of that fully funded emergency fund, it’s time to start saving for the future! Wealth Building: The final reason to save up money is for wealth building. Just remember-the more money you throw at a goal, the quicker you get there! (The boat can wait!)Īgain, there isn’t a set percentage here. What about the fun big purchases? Like vacations, new furniture or that boat to make all your fishing dreams come true? You should save up cash for these too! But get to the luxuries after you’re debt-free and have some solid financial security. So, keep your eyes on your stuff so you’ll know when to put money in savings for those necessary big purchases. But when you know your beater is hanging on by duct tape and prayer, that’s when you start saving for a replacement. When your car breaks down, to your complete surprise, that’s a job for the emergency fund. Basically, if you don’t have one yet, you need to cut back on any extras and get intense on stuffing cash into your savings until you do!īig Purchases: Another reason to put money in savings is if you’re planning any big purchases. This includes saving up for a reliable car to replace the one you know is on its last legs (er. It’s hard to tell you what percent of your income to put toward your emergency fund. This is three to six months of expenses and will protect you against bigger emergencies, like job loss or your car going kaput. When the debt’s gone, you need to save up what we call a fully-funded emergency fund (Baby Step 3). If you’ve got debt (which we cover later) keep that emergency fund at $1,000 until you’re debt-free (which is Baby Step 2). (We call that a starter emergency fund, or Baby Step 1.) This puts a cash buffer between you and those life happens moments. Since budget percentages for these can vary, let’s talk through each one.Įmergencies: Set aside $1,000 in the bank right away. When it comes to the savings category of your budget, think about these three reasons to save: emergencies, big purchases and wealth building. How much you’re putting in savings each month depends on several factors! 1 But this is a great example of how a percentage or even an average shouldn’t set a standard for you. If you’re wondering what’s typical here, the average American saves around 9% of their income. This is the proven, guided path to save money, pay off debt, and build wealth. Heads up: You’re about to hear us mention the 7 Baby Steps. Giving is good for you and for others, and we recommend giving 10% of your income. Generosity shifts the focus off of us (our problems, our financial shortcomings) and reminds us of our blessings. Tithing to your church, donating to charities, supporting worthy causes-even if you’re in debt. ![]() Look up your own! Open your online bank account or get out those bank statements and see what your past spending reveals. maybe you should make a good money playlist to get you in the budgeting mood.)Īnd one more thing: If you’re reading this as you set up your first budget, don’t stop with the numbers we give you. Or maybe a category is like a playlist, and the lines are like songs. ![]() If those words are new to you, think of a budget category as a folder, and the budget lines as files inside it.
0 Comments
Leave a Reply. |