Do you know where your money is going? One of the reasons a budget is an effective money management tool is that it puts you in control of your money so you don’t have wonder where your money went. If you don’t have a budget, at least take the time to see how you spend your money. It can be a real eye-opener.
Lifetuner’s infographic (click here to view the whole image) shows how the average American paycheck is spent. To give you an idea of what these numbers mean, here’s how a single person making $32,000 a year spends his money based on the information provided by Lifetuner:
- Housing (35%) – $11,200 a year, $933.33 a month
- Transportation (15.6%) – $4,992 a year, $416.00 a month
- Food (13%) – $4,160 a year, $346.66 a month
- Life insurance, Social Security, tax, etc. (11.2%) – $3,584 a year. $298.66 a month
- Healthcare (6.3%) – $2,016 a year, $168.00 a month
- Entertainment (5.49%) -$1,756.80 a year, $146.40 a month
- Apparel & services (3.5%) -$1,120 a year, $93.33 a month
- Everything else (10.45%) -$3,344 a year, $278.66 a month
So how are you spending your money? How does it compare to the average American? For ideas on how to create a budget and allocate your income, you can read our suggestions here.