|
 |
Getting your
budget to balance... Page 2
continued
One way look for possible
cuts is to compare your spending to some average or benchmark. What do other families
spend? If you visit your library you'll find some sample budgets. Another source is
information collected by the government. In the Statistical Abstract of the United States
1994 they list what different size families spent in various parts of the country. The
info for the average size family is reproduced below. You can compare your spending to
those averages.
Item |
Amount |
Percent
|
food |
$4,273 |
|
11.98% |
|
at home |
$2,643 |
|
7.41% |
|
away |
$1,631 |
|
4.57% |
|
alcohol |
$301 |
|
.84% |
|
housing |
$9477 |
|
26.58% |
|
utilities |
$1984 |
|
5.56% |
|
shelter |
$5411 |
|
15.17% |
|
furniture |
$316 |
|
.89% |
|
clothing |
$1,710 |
|
4.80% |
|
transport |
$5,228 |
|
14.66% |
|
car purchase |
$2,189 |
|
6.14% |
|
insurance |
$629 |
|
1.76% |
|
health care |
$1,634 |
|
4.58% |
|
entertain |
$1,500 |
|
4.21% |
|
personal care |
$387 |
|
1.09% |
|
reading |
$162 |
|
.45% |
|
education |
$426 |
|
1.19% |
|
misc |
$765 |
|
2.15% |
|
cash gifts |
$958 |
|
2.69% |
|
pension |
$2750 |
|
7.71% |
|
life insurance |
$353 |
|
.99% |
|
social sec |
$2394 |
|
6.72% |
|
pers taxes |
$3068 |
|
8.60% |
|
Total |
$35661 |
|
100% |
|
Your
expenses will be different from the average. But you will be able to see some areas where
your spending is higher than the average. Those categories are potential sources for
spending cuts. A plan that says that you'll cut spending by 5% is not really a plan at all
unless you know specifically what cuts you'll make. Don't fool yourself. You're the only
one who'll lose.
Knowing where you want to go is the first step in financial freedom. Putting a
realistic plan together to get you there is the second step. Then it's just a matter of
doing what you said you wanted to do. It seems like a long journey. But if you break it
down into individual steps it's really not that hard. A lot of other people are making it
happen. You can, too!
Gary Foreman edits The
Dollar Stretcher website. You'll find the web's largest collection of free money
saving articles. There's even a free weekly email newsletter. Visit Today!
Credit and Debt Calculators:
------------------------------
• Should I pay off debt or
invest in savings?
• What will it take to pay off my balance?
• Should I consolidate my
debts?
• How Much Am I Spending? |
