Many people don’t know that life insurance can help you budget. Let’s see ways it can help you.
Budget Examples and Considerations
Before we look at some budget examples, let’s talk about money. These days, it seems that all we want to do is to spend money. But where does your money go? Let’s break down the average American salary. $56,516 is the median average salary. $56,516 a year breaks down to $4,709.67 (before tax). In 2019, you would be at the 24% tax level. 24% of $4,709.67 is $1,103.32, which makes your monthly income $3,606.35. This number excludes the standard deduction, so your actual number will vary.
Let’s look at some budget examples: Assuming you live somewhere in the DFW area:
- The average cost of a one-bedroom apartment is around $1,023 a month.
- The average energy bill in Texas for a one-bedroom apartment is $122 a month.
- The average water bill in Texas for a one-bedroom apartment is $50 a month.
- The average trash/pests bill for a one-bedroom apartment in Texas is $18 a month.
- The average Internet bill in Texas is $59 a month
- Average cable bills for Texas are $100 a month.
Utilities and rent total: $1,372. So far, that makes your monthly take-home (after rent and utilities): $2,234.35
The “Essentials”
Now let’s look at more budget examples:
- The average monthly grocery bill is $200.
- Average Health Coverage for a young person is $257 a month.
- The average car payment each month is $381.
- The average cost of Car Insurance is $350.
- The average monthly cost of gas is $120
- The average cost of renters insurance is $17 a month
- The average cost of an Unlimited phone plan with a phone is $100
Additional expenses total $1,315. So far, that makes your monthly take-home (after rent, utilities, and additional expenses): $919.35.
Everybody wants to eat out once in a while. We also have subscriptions such as Netflix, Spotify, and Amazon Prime. After all the “essentials,” you only have $900 to save or spend how you want. Something that is extremely important but is not on the “essentials” list is life insurance and retirement savings. Life insurance is critical for anyone who wants to prevent financial hardship for the ones they leave behind. Retirement savings are also extremely important. If you don’t save for your retirement, how do you plan on retiring? Let us help you plan a better future. There are ways of cutting down your current expenses in a way that does not reduce your quality of life much, and you still get that life insurance and retirement savings you desperately need.
Life Insurance Questions?
We hope that this information on life insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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This article was updated 6/7/2024.