Budget Examples and Considerations – For Individuals

Budget Examples and Considerations

Before we look at some budget examples, let’s talk about money. It seems that all we want to do these days 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 in the 24% tax level. 24% of $4,709.67 is $1,103.32, which makes your monthly income $3,606.35. This number is excluding 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.
  • Average water bill in Texas for a one-bedroom apartment is $50 a month.
  • The average trash/pests bill in Texas for a one-bedroom apartment 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. They also have subscriptions such as Netflix, Spotify, and Amazon Prime. After all of the “essentials” you only have $900 to do what you want with. 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 really reduce your quality of life by much if any, and you still get that Life Insurance and Retirement savings you desperately need.

Get with one of our life and financial experts today! They can help you choose a policy. Additionally, they can conduct a policy review to ensure that your current policy is still right for you!

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