Where is your money going?

where is money going

Click on the image above to view the entire infographic from Lifetuner.

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.

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