Ignoring your budget and sticking your head in the sand is not a good solution to making your money efficient. Most people don’t analyze their budget very closely. If you really do take a good look at your budget and get a firm understanding on where your money goes, it can be shocking.
Frivolous spending on items such as entertainment, eating out, online shopping, and unplanned purchases can add up and throw your budget into the negative territory.
Below is a table from the U.S. Department of Commerce on how the average family spends money annually, monthly and what percentage each item represents in their budget.
U.S. Average Household has 2.5 people, 1.3 Earners and 1.9 vehicles with 63.7% home owners.
|Pensions, Social Security||$5,027||$418.92||10%|
|Housing Utilities, fuels, etc||$3,477||$289.75||7%|
|Food away from home||$2,668||$222.33||5%|
|Retirement & Cash Savings||$1821||$151.75||4%|
|Life, other insurance||$309||$25.75||1%|
Mvelopes budgeting system can help track your expenses and help you plan how to spend your money. Assigning every dollar a purpose helps make your money efficient and reduces waste. Who wants to waste money?